Finacially Broke govt plans to fire at least 25 000 workers
Zimbabwean Goverment Minister Patric Chinamasa
Patrick Chinamasa has put forward some stringent cost-cutting measures for the Government which include cutting government workers, salaries and bonuses for at least two years, and the report initiated this past Friday.
The Finance Minister also said that at least 96.8% of government’s money is spent on paying its huge number of workers.
While speaking during his mid-term budget review statement on Thursday, the minister stated that the government could reduce its budget expenditure to at least manageable proportions if it could cut some of the allowances and salaries that are being made to senior government officials, including ministers.
He also proposed to tax civil servants’ allowances with effect from next month using a progressive tax structure.
Chinamasa was quoted saying. “The wage bill remains a major component of high expenditures, with employment costs taking 96, 8% of the total budget. The wage bill is at the centre of the fiscal deficits and, hence, overall macroeconomic instability,”
Chinamasa also planned to reduce the Government’s workforce by at least 25 000 workers in the next two years.
Furthermore the government would also look into reducing the number of its embassies, and workforce across the globe.
In a similar move last year, Chinamasa was dealt a blow by President Robert Mugabe after announcing that the government would cut the 13 cheques.
Mugabe, at the time, reversed Chinamasa’s decision, saying: “l want to make it clear that the report which was in the newspaper that bonuses that were being withdrawn is not government policy. The cabinet did not approve that at all.”