Government has begun a staff rationalization exercise as part of broader measures aimed at cutting its huge recurrent expenditure and redirecting resources towards capital projects.’
This comes as Government directed that over 500 employees without requisite qualification be retired with immediate effect.
“Please be advised that at its 38th meeting of December 7, 2017, Cabinet directed that 528 members of the Public Service Commission without requisite qualification be retired…with immediate effect. The members shall be struck off the salary service bureau pay sheet by December 31, 2017,” read a letter addressed to various Government ministries and seen by Business Weekly.
In the 2018 budget, Minister Chinamasa pronounced a cocktail of measures to cut recurrent expenditure, including civil service and diplomatic staff rationalization, a reduction in the size of the executive, a cut in staff benefits and restrictions on foreign travels.
Minister Chinamasa said this was part of a “new economic order” involving the implementation of a comprehensive and coherent expenditure management strategy that reorients resources towards development programmes for the benefit of Zimbabweans.
The country is aiming for a 2018 budget deficit of below four percent of gross domestic product.
Government has been funding the high level of recurrent expenditure and widening budget deficit through issuance of Treasury Bills and this has resulted in excessive “printing” of money and in the process driving real money out of circulation.
The new government is working on coming out of isolation of the global community largely blamed on former President Mugabe economic policies including the controversial empowerment laws which compelled foreign owned businesses to cede majority shareholding to black Zimbabweans. The new government, led by President Mnangagwa and has pledged to re-engage the international community, which demanded boarder reforms including staff rationalization to recurrent expenditure.