Broke Zim govt forced to retrench

HARARE - The government has buckled under pressure and started to retrench civil servants to cut its wage bill as it struggles to pay its 350 000-strong workforce.

Reduction of the public wage bill was part of a plan agreed with the International Monetary Fund (IMF) under the Staff Monitored Programme to help reduce the country’s debt which is estimated at more than $10 billion.

The Civil Service Commission announced last week it had abolished 100 posts in the Women’s Affairs ministry and also retrenched diplomats in Zimbabwe’s 42 foreign missions.

The retrenchments are set to pile on the ranks of the unemployed in a country where more than 80 percent are already jobless.

The civil service will be further culled in the coming months, officials said.

Already, the broke government was this month forced to postpone its pay date to July due to the shortage of funds.

The delay has raised questions over the state of government finances. Latest data shows the government grossly missed its revenue target.

The country’s economy is struggling due to a lack of investment and closure of companies which complain of high wage and other costs as well as shortages of water and electricity.

Cutting wages would

allow Harare to free money to develop its failing infrastructure, including roads and power-generating plants, as well as social services like health and education.

In his 2016 budget statement, Chinamasa said the government wage bill was consuming an unsustainable 80 percent of revenue.

He conceded that this needed to be reduced to 30 percent by 2018, but insisted that this would be done by growing the economy and generating more revenues instead of retrenchment.

Comments (9)

symptoms of over stayed administration...

dennis moto - 20 June 2016

Could the journalist offer a breakdown of the 350k govt employees by ministry & rank. Daily News, please modify your editor to allow backspace and other text editing's a pain to correct a typo by deleting all typed text first.

Sagitarr - 20 June 2016

The gvt needs new and young blood who are innovative in the civil service and parastatals for the economy to work not old lazy people who should be given retrenchment packages. Young graduates who can grasp the concept of easy of doing business should be seconded to these old guys whom when met with challenge they refer to some colonial statutory instruments and can't move on.

Citizen - 20 June 2016

retrenchment my foot.These hooligans should stop this at once.

mushakabvu - 21 June 2016

The scandals taking place like the Chivaro ZESA issue s are the key issues before we look at retrenching

chitayitayi - 21 June 2016

And they vote for the same administration every 5 years

Slim Cat - 21 June 2016

$8m is 80% of $10m while $8m is 30% of $27m where $8m is wages and $10m and $27m is revenues. PLEASE INCREASE REVENUES

REVENUE Revenue - 21 June 2016

It is good that government is at least taking measures to contain its run away wage bill but attention should first hav beenpaid to government ministries where we have too many of them. Trimming their number would be most welcome. Some ministries are just white elephants. What does the ministry of pychomotor skills really do? There are sister ministries which should be merged too.

edika - 21 June 2016

Hameno itai zvamada?.

yahooo - 24 June 2016

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