via Zimra boss urges Govt to cut salaries | The Herald February 23, 2015 by Conrad Mwanawashe
THE Zimbabwe Revenue Authority commissioner general Mr Gershem Pasi has called for a cut in salaries across the board and for Government to stop creating too many non-productive entities which are draining the already strained Treasury.
Recurrent expenditure is draining about 92 percent of Government revenue. The chief tax collector said Government, employers and labour should resuscitate the social contract in order to stop the country sinking “deeper into the hole”. Mr Pasi said salaries were pegged at artificial levels when the country adopted the multi currency system in 2009 and the national cake cannot sustain such high payouts.
“We pegged our wages and salaries basing on that artificial level which was premised on the hyper-inflationary environment we had just come out of. My proposal is that we have never needed a social contract more than now. And that social contract should not be there to maintain the status quo. Dr Mangudya in his statement urged that there should not be any increase in salaries. What would happen if we went further; let’s cut the salaries. Let’s cut prices,” said Mr Pasi.
Zimbabwe adopted the multi currency system following a run of hyperinflation which led to the collapse of industry which could not sustain operations as a result of the moribund local dollar. Mr Pasi said the country will continue to sink deeper into problems if corrective measures are not taken.
“Otherwise all we are doing will be just fire fighting but the truth is we are going deeper and deeper into the hole until we take drastic measures,” said Mr Pasi. “Why not say cut by 20 percent across the board; cut wages, interest rates, everything because it will be a social contract. We will give ourselves room to start the growth process,” he said.
He said the country should review its costs structures particularly the wage bill.
Recurrent expenditures of about 92 percent continue to outweigh Government leaving only eight percent for capital development programmes. Mr Pasi wants a review of how the budget is crafted in order to adopt a system where “we start with what is available” as opposed to what is expected.
“We also need to review the way we do our budgeting. We should start with what’s available both in terms of anticipated revenue, allowable borrowings and any grants that are assured and then we cut our cloth to fit that revenue plate,”
He suggested that the country adopts a framework which may not be changed at any situation for revenue distribution and called for discipline in relation to following budgetary allocations. To save revenue for capital development Government should avoid creating a multiplicity of non-productive entities which drain the fiscus.
“We continue to create not-so-useful entities. We also created too many independent funds. Why do we create funds which are managed outside the central treasury funds? And when we have created them they are not accountable to anybody,” said Mr Pasi.
Mr Pasi said the new constitution is an expensive venture as it expanded cost drivers putting further strain on the already pressed Treasury. “We have some legacy issues one of which is that during the Government of National Unity we had a new Constitution. It is a very expensive Constitution. Today we are talking of creating fiscal space, you can’t do much with the set up that we have. Look at the expansion that happened with the new Constitution of the legislature. Can we afford it? We created so many additional members in both houses but at the end of the day we must pay for it,” said Mr Pasi. When the expansion was done, there was no consideration on the cost of such an expansion to the legislature, he said.
COMMENTS
“Otherwise … until we take drastic measures,” said Mr Pasi. “Why not say cut by 20 percent across the board; cut wages, interest rates, everything because it will be a social contract. We will give ourselves room to start the growth process,” Pasi said.
While this Gershem might be confused for an honest patriot, truth is he is busy clowning on the “across the board” issue. Surely, it is foolish 2 suggest that ordinary teachers, doctors, etc, are over-paid in Zim. That is utter rubbish.
Truth in Zim is we have a few Cashberts, with zanu pf links of course, who are busy making money (not earning it) while majority sweat for peanuts just to bankroll the insatiable greedy of these zanu pf kleptocrats. This is where this guy betrays his foolish dishonestness. U can not talk of across the board when you know fully well that all resources of the country are being pocketed by a few & most workers don’t earn anything that is worth the term wage/salary.
Why cant this guy be honest & say: no Cashberts in the country. If anything, what ordinary workers need are massive upward reviews of their earnings not the other way. Just a scan of the salaries across SADC will reveal that all workers in Zim expect the Cashberts (of which Pasi is obviously one) are grossly under-paid and yet Zim is the most expensive country to live in the region.
Pasi, spare us your nonsense. We all know you belong to the Cashberts and it’s your unearthly high salaries that need to be cut drastically not everyone else. You are lying; and you are being very inconsiderate. Gossh!
Recurrent expenditure is draining about 92 percent of Government revenue. The chief tax collector said. “We pegged our wages and salaries basing on that artificial level which was premised on the hyper-inflationary environment we had just come out of.”
Why are the chef’s salaries still “pegged” on the hyper-inflationary environment which ended in 2009 = 7 years ago? Why?
Also why is 92% of ALL money collected being channeled to perks and allowances?
Truely, if this government were the management of a private company they were going to be fired first month.
The reason we are sinking is because of very bad government policies, and serious corruption.
Zanu PF is the author of all this, and just like the RBZ debt, wants the nation to pick up the tab. Instead of them putting policies in place that will actually work for the country.
Even if they had to acquire a huge cash injection, it will not work, because our economic game plan is a joke.
The results are there for all to see.
What they also do not want to admit, is that they are absolutely incompetent.
The best thing that can happen to Zimbabwe, is for Zanu PF to resign from government.
So very true Tiger Shona. This impasse can not go on forever.
Stupid government! All these problems are man made because of greedy, corrupt, morally bankrupt and incompetent fools in government. What matters more to them is their bank balance, their cars, power and the trappings of materialism not the country. They are bereft of any goodness!!!
Pasi must first declare his salary and take a voluntary salary cut to the size of the average worker in Zimbabwe which is around US$200-00/ month. Pasi must lead by example. we are tired of wage cut preachers who are looting state resources in cahoots with their ministers who approve such obscene salaries while the ordinary worker is impoverished. shame on you.
The gvt wage bill is not surprising because attempts to carry out an audit are not welcome by the regime because its campaign machine is part of the civil service which are now more than half a million workers for gvt which is not a profit making organisation.
Pasi you must think before you talk. you want to keep on squeezing blood from a rock
Pasi must be congratulated for his bravery-the house is on fire,the ship is sinking-the revenue collector himself has said it.This does not come as a surprise to those who care to listen to Tsvangirai each time he comments on the status of our economy.The solution is not with the civil servants salaries but in policy shift.Like it or not, good governance is the largest decider of a country’s economy.Zanu has failed the people.The best thing Pasi would do for us is to tell Mugabe and his cronies the truth-they have failed and must resign.