Govt's position paper on Civil servants confirms serious economic crisis

The government' position paper that indicates that says the wage bill is unsustainable exposed the fact that the economic crisis in the country is escalating, an MDC-T official has said.

MDC-T National Organiser Abednico Bhebhe said a government position paper to civil servants on its precarious financial situation this week is the clearest admission that all is not well, and the economy is grinding to a halt, if not already.

"The paper says the wage bill is unsustainable after jumping six-fold from $550 million in 2009 to about $3 billion cumulatively this year at a time indications point to a government that is now insolvent," he said.

"The revenue base has shrunk considerably but the clueless government thinks that it can increase tax revenue in a grinding economy. This thinking is fallacious as company closures will continue to beat the economy to its knees."

He said Zimbabwe is now a vendor economy and the other thinking that this informal sector can contribute to the fiscus through taxes is equally mistaken and fallacious.

"Revenues will keep collapsing as the economy shrinks faster and sooner or later, the government will fail to pay salaries. The only solution is to reduce total expenditures though Zanu-PF seems reluctant to do so for political reasons.

Government has to reduce its operating costs, a greater percentage of which is wages and Mugabe's endless foreign junkets," said Bhebhe.

"Zanu-PF has no choice but to reduce head count, number of foreign missions, Mugabe's travels and other civil service perks. Mugabe has gobbled over $20 million in foreign travels since January."

Bhebhe said in Kenya, President Uhuru Kenyatta on Thursday cancelled his trip to Nigera for the swearing in ceremony of incoming Gen Muhammadu Buhari after questions were raised over his large entourage.

"Kenyatta had to send his deputy William Ruto to represent him. In Zim, despite complaints, an ageing stubborn Mugabe does not give a hoot and is now a tourist to this country," he said.

"As such, Patrick Chinamasa will keep begging and begging but no multilateral financial institution or foreign government will give Zimbabwe any financial support to pay for recurrent expenditure, such as Mugabe's never ending foreign travels, most of which are just useless."

He said the sooner Mugabe and company realize this, the better for the economy and Zimbabwe, otherwise, Zanu-PF is on its way out, kicked out by the economy.