via Govt domestic borrowing up 52 pct – New Zimbabwe 26/03/2015
THE government’s domestic borrowing jumped 52 percent to $544.03 million in January from $358.80 m in the same period a year ago, the central bank said on Thursday.
Zimbabwe is struggling with falling revenue from taxes, which stood at $469 million in January against a target of $542 million, as the economy stalls and businesses are forced to lay-off workers or shut down.
The central bank said the government had racked up the debt largely through issuing Treasury bills to raise money to plug the tax revenue shortfall and settle domestic loans.
More than 80 percent of Zimbabwe’s total revenue is used to pay government workers, leaving little money to build infrastructure such as roads, hospitals and schools.
Finance Minister Patrick Chinamasa has said the government is actively looking at ways to reduce its wage bill, but it has few choices other than cutting salaries or jobs, decisions which could have serious political ramifications.
COMMENTS
Government borrowing money to fund salary expenditure – the most certain sign of Government bankruptcy and serious financial mismanagement. Or are they borrowing money to fund Mugabe and his huge entourage’s almost weekly foreign trips and pay for Grace’s medical treatment?
That would be even worse.
Looting that will have serious repercussions on the next generation.
This is not rocket science; the civil service is too bloated. For a small country like ours, we need half the number of the existing ministries; half the size of the army and police. How can 80% of the country’s revenue go to civil servants salaries? Any grade 3 pupil can do the math and realize that this is not sustainable.