Categories: Stories

Zimbabwe cabinet rejects plans to cut spending

It took government six months to pay the 2015 bonuses, culminating in a salary default in June.

Last week, Chinamasa said his proposals would save government at least $355 million over the next two years, a significant amount that’s nearly 10 percent of projected 2016 government revenue.

Mugabe’s government has, over the past three months, faced a series of protests over a growing economic crisis marked by bank note shortages, widespread hunger after another failed farming season as well as job losses and rising poverty.

In July, grassroots protest movements took advantage of a government strike over unpaid salaries to stage the biggest boycott against Mugabe’s rule in a decade.

Government has been struggling to pay its employees, estimated at 500 000 including security forces, on time.- The Source

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This post was last modified on September 14, 2016 2:36 pm

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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.

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