THE sustained and rapid rise in federal civil administration and pension expenditures over the last five years continues to challenge the government’s claims of achieving fiscal discipline. If anything, the surge in these costs despite austerity measures — usually the withdrawal of pro-poor subsidies — job cuts and the ongoing overhaul of federal ministries and departments suggests that the problem is structural.

New finance ministry data shows that the cost of running the government jumped 13pc in the July-September quarter this year — notwithstanding the move to abolish thousands of civil service posts, which the finance minister expects will save Rs56bn annually. Meanwhile, the long-overdue pension

© Dawn