Government wants to cut the civil service wage bill by $200 million in the 2019 National Budget as part of measures to tame spending.
Salaries and perks at State-owned enterprises will also be reviewed.
The bold measures are outlined in the Transitional Stabilisation Programme (TSP) launched by Finance and Economic Development Minister Professor Mthuli Ncube on Friday. TSP will guide Zimbabwe’s economic policies for the next 27 months.
On Friday, Prof Ncube indicated employment costs — inclusive of employer contributions to medical insurance and pensions — topped 90,6 percent of Govenrment revenue in 2017.
“Government remains committed to a Wage Policy which is directly anchored in its fiscal objectives, and sustained implementation of Cabinet approved public service wage bill rationalisation measures…
“This creates additional fiscal space to accommodate financing of the development Budget, as well as improve the coverage and quality of key social services, “ said Prof Ncube .
“In this regard, the 2019 and 2020 National Budgets will institute wage containment measures which will reduce the annual wage bill outlay by around $200 million and $130 million, respectively,” he said.
Treasury says the civil service is top-heavy and staff rationalisation will be undertaken. Salaries and perks of chefs at the country’s 107 State-owned enterprises, 70 percent of which are technically insolvent, are being reviewed.
Further, sitting allowances for legislators will be reviewed from January 2019.
An effort is being made to plug hemorrhaging of public finances in by-elections by pushing for amendment of the Electoral Act to ensure they are held bi-annually or scrapped altogether by having political parties selecting replacements to fill vacancies until the next general election.
Errant motorists are also in Treasury’s crosshairs, with hefty fines for traffic offences proposed.
Prof Ncube said, “Some motorists, particularly commuter omnibuses and ‘mshika-shika’ drivers show open disdain to road regulations, routinely risking the lives of passengers, other motorists and pedestrians.”