Categories: Stories

Chinamasa to reduce civil service bill from 90 to 50 percent by next year

Finance Minister Patrick Chinamasa, who has been battling to cut the civil service wage bill for years but is being thwarted by his own Zimbabwe African National Union-Patriotic Front and the civil service unions, says he will reduce the wage bill from 90 to 50 percent by next year.

Zimbabwe’s wage bill consumes 97 percent of the government revenue leaving only 3 percent for development.

“We are targeting to reduce the proportion of expenditure from over 90 percent to less than 55 percent by 2018-9. I am confident that we will achieve it,” he was quoted by the State-controlled Sunday Mail as saying.

“Government has two avenues to address the wage bill which are staff rationalisation and improving production. We have already started staff rationalisation and the other method is to grow the cake – production, production and more production. We are also dealing with the issue to do with the current account deficit.”

Although Chinamasa said the cabinet had already agreed on staff rationalization last time he said so, the cabinet went on to reverse its decision.

With elections due next year, it might be an uphill task for Chinamasa to get the nod.

(99 VIEWS)

This post was last modified on %s = human-readable time difference 8:32 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024