Government forced to delay pay, again

via Government forced to delay pay, again 13/05/2014 NewZimbabwe

THE government has yet again deferred pay dates for civil servants, in a sign the country’s exchequer is struggling to raise money to pay the State’s bloated 230,000 workforce.

Last month analysts warned that government risked failing to pay its workers after cabinet awarded them a 23 percent salary hike at a time state revenues continue to fall as the economy slows down.

Pay dates have been shifted over the last two months and civil service commission secretary, Pretty Sunguro, confirmed the latest delay in a statement Tuesday but did not give any reasons.

“The Ministry of Finance and Economic Development has changed the May 2014 pay dates,” she said.

Staff in the education sector would now get their salaries on Friday instead of Thursday, while the rest of the civil service, due to have been paid next Thursday, will now be paid on May 29.

Pensioners would be paid on May 30 instead of May 28.

Despite admitting a serious cash squeeze, the government this year increased civil servants salaries to honour a promise made by President Robert Mugabe and his Zanu PF party during campaigns for elections last year.

The 23 percent hike, much lower than the doubling initially promised by the politicians, increased the government wage bill to about US$155 million from around US$100 million.

The hike came after Finance Minister Patrick Chinamasa complained, in his 2014 budget statement, that salaries had gobbled an unsustainable 75 percent of State revenues in 2013.

Analysts warned that government faced a real risk of failing to pay the new salaries.

“Where will government get the money to pay the salaries and will it be able to afford such a huge bill given the depressed economic activity?” asked economist Innocent Makwiramiti in an interview with online news agency, The Source.

“You might get a situation where government will be unable to pay after one or two months, given that it has struggled since January to raise that increment.”

Business consultant Herbert Mazonde added: “It cannot be business as usual.

“There has to be new or improved streams of income otherwise it cannot be sustained by existing tax revenue. The risk is that government may fail to pay salaries in the coming months.”

Chinamasa admitted in his 2014 budget statement that the government wage bill needed to be reduced to 30 percent of revenues by 2018.

But, keenly aware of the unhappy political ramifications of retrenchments, the minister ruled any staff cull, saying the target would be reached by growing the economy and increasing tax revenues.

So far, however, the economy is refusing to play ball although government insists its ZimAsset blue-print will soon begin to bear fruits.

 

COMMENTS

WORDPRESS: 13
  • comment-avatar

    ZPF God’s judgment is falling. What God wants is repentance! There are many who can tell you basic honest and truthful things to get Zimbabwe up and working again but will you listen??? Start with decent leadership renewal. Now!

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    Petal 8 years ago

    THE MOST SICKENING is that those in power STEAL FROM THE COFFERS AND PUT THEIR HANDS OUT TO BEG AND THEN DO NOT PAY BACK THE MONEY THEY HAVE LOANED AND EXPECT COUNTRIES WHO HAVE GIVEN TO WRITE OFF THEIR DEBT – IT DOES NOT WORK LIKE THIS

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      Jono Austin 8 years ago

      and once forgiven, ‘start with a clean slate’ and ask for new loans…

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    Gomogranny 8 years ago

    Pay up you scum bags….

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    It is as we all expected. Lying will only work for a while for ZANU, then the truth starts to bite them in the ass.

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    Jono Austin 8 years ago

    It’s going to hit the fan soon-they are going to find it increasingly difficult to pay the civil service and army…hence emergency politburo meetings

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    If you can, try to stock up supplies as soon when they can’t pay the police and the army all he’ll Will break loose.

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    John Thomas 8 years ago

    Eventually retrenchment will be done. It should have been done decades ago.

    The army and police will not riot, they will become more corrupt and demanding. Expect a roadblock right on your doorstep. Expect Zimra to be around all the time levying unjustified penalties.

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    Finance Minister Patrick Chinamasa complained, in his 2014 budget statement, that salaries had gobbled an unsustainable 75 percent of State revenues in 2013.
    By now it is more than likely 100% of state revenues and increasing. Still no deleting of the “Ghost Workers” so someone is still profiting!!!

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    mash Luis 8 years ago

    Reduce VAT, corporation tax and customs duty by half as an example; arrest all corrupt officers and cronies; retrench to leave half of gov workers (what production are they making when gov is broke). These measures will stimulate production as raw marerials prices will fall, consumtion of cheap products will rise; FDI will increase as tax goes down; misinvoicing will disappear; more SMEs will emerge; more informal traders will formalise because of variable incentives. Endless opportunities. We just need leadership.

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    munzwa 8 years ago

    Once bitten twice shy!!! zanu you have had your day thank you very much, now get the hell out of here!!!

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    Daniel 8 years ago

    A lot of these civil servants vote for Bob.Hope you enjoy the fruits!

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    It’s high time we need to think as a family ,village , district, province and a nation. We can blame each other till eternity comes. Will we live that long I wonder? Basically this blame game is absolutely senseful but useless. How long shall we live in the darkness yet we (citizen) are the light we long. Let us just shine out our lights. Be mature People don’t judge the already condemned.