Compensation of employees takes up the largest share of spending and has grown faster than other categories of spending over the past four years, a concern also shared by BUSA. The Manufacturing Circle applauds National Treasury for emphasising the importance of moderating the public sector wage bill increases to support growth and sustainable job creation in the economy. Carry through costs of the current year's wage settlement have been largely done through draw downs on the contingency reserves. Departments need to set specific three-year targets for personnel numbers and remuneration costs and monitor improvements in productivity and effective use of existing staff establishments.