Zimbabwe spends $1.2 billion on coronavirus

Ncube said government could even afford to recruit an additional 4 000 nurses and 200 medical staff in March, increasing employment costs from $1.2 billion in February to an average of $ 1.7 billion per month in March and April.

“While there was an increase in expenditure, for some heads, overall spending was contained within the target as Ministries, departments and agencies re-directed spending within their approved budgets. Resultantly government recorded a surplus amounting to $77 million as of April,” he said.

Ncube said treasury was in the market to raise $1 billion for emergency Covid-19 funding.

“Obviously we are targeting banks, pension funds and so forth. We will raise additional funding through our borrowing programme. To date $500 million has been mobilised through treasury bills issued under the auction system and also private placement. Government is targeting to mobilise the outstanding $500 million from the insurance and pension funds.”

He said government funding had been complemented by domestic cash donations which stood at US$85 000 and $14.8 million in local currency.

Zimbabwe’s development partners had also chipped in with US$184.35 million.

Weighing in, Finance and Economic Development Permanent Secretary George Guvamatanga said; “We have actually managed to provide this funding without any access to the RBZ overdraft window or any funding support from the RBZ. We are very pleased that we have been able to achieve these increased funding requirements without recourse to inflationary funding methods.”

“The question will come, how have we achieved it? I think we have been able to achieve it because in the 2019 financial year we were able to carry over a surplus in real terms which then allowed us to be able to meet some of the increasing demand from Covdi-19,” he said. –New Ziana

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