Zimbabwe struggles to meet payroll, pay dates to remain erratic

via Govt struggles to meet payroll, pay dates to remain erratic – Chinamasa | The Source on May 28, 2014

Finance minister Patrick Chinamasa on Wednesday admitted that government is struggling to pay its workers as it relies entirely on tax remittances, resulting in frequent changes to the pay dates.

Government this month deferred pay dates for its 230,000 workers, for the second time this year, one month after awarding them a 23 percent wage increase which analysts say is unsustainable.

Last month, the state also paid its workers late, with reports suggesting it was failing to remit mandatory pension, social security and retail credit deductions, among others.

“We run a cash budget, and a cash budget means that we wait for receipts from Zimra (Zimbabwe Revenue Authority) before we can disburse to meet the obligations of government including the salaries of honourable members,” he said in response to a question by Member of Parliament for Glen View North, Fani Munengami, on why government continues to shift pay dates.

“When resources are not of the levels to meet our obligations we have to wait,” Chinamasa said.

Government pledged to fulfil election promises by President Robert Mugabe’s ZANU-PF party last year, to raise the wages of its 235,000 employees to the $543 poverty line, but analysts have warned that such an increase would lead to defaults.

Treasury already spends three quarters of its $4,1 billion budget on salaries for state employees, the bulk of whom are teachers.

Recurrent expenditure, mostly wages, have eaten up 96 percent of monthly revenues since January, crowding out essential capital expenditure.

Revenue agency Zimra passed its revenue collection target for the first quarter by two percent to $834.6 million, an achievement described by its commissioner-general, Gershem Pasi as a ‘miracle’ in the wake of the economy’s poor performance.

 

COMMENTS

WORDPRESS: 6
  • comment-avatar
    Chaka 8 years ago

    Can’t they reduce military employees by retiring some at an early age and suspend recruiting Surely most of them wake up in the morning to parade n that’s the end of the day. Do we need green bombers?

  • comment-avatar
    Tjingababili 8 years ago

    IS THIS TRUE! STEALERS!

  • comment-avatar

    They must retire 30000 old soldiers,50000 police reserves,80000 ghost workers and the budget will be enough for 3 months salaries….

  • comment-avatar
    Petal 8 years ago

    For petesake -EXIT you are failures

  • comment-avatar
    Don Cox 8 years ago

    The problem with reducing the military is that you then have a lot of unemployed men with no useful skills to deal with.

  • comment-avatar

    That would accurately describe zanu pf