Mnangagwa must enforce stringent austerity measures

Mnangagwa must enforce stringent austerity measures
Published: 09 February 2018 (284 Views)
During the inclusive government between long-time rivals - deposed president Robert Mugabe and opposition MDC leader Morgan Tsvangirai - a statement which goes; "We eat what we kill" became very common.

The phrase, commonly used by then Finance minister Tendai Biti, simply meant living within the budget.

At the time, the "living within your means" approach helped curb Mugabe administration's runaway expenditure. And things improved during the time as government expenses were contained, while resources were channelled towards other important things.

But it seems government has since returned to its old ways - living beyond its means.

According to Reserve Bank of Zimbabwe governor John Mangudya's latest monetary policy released on Wednesday, government broke the bank, exceeding its $800 million overdraft facility by $400 million, leaving it indebted to the tune of $1,2 billion as at December 31, 2017.

Obviously, a greater part of that debt was incurred during Mugabe's time, as Mnangagwa only took office on November 24, 2017. But that's unsustainable.

It calls for urgent austerity measures and serious belt-tightening by the new dispensation. At this point in time, government is broke. It cannot sustain its excessive expenditure, most of it unnecessary.

Although Mnangagwa started off on a good note in terms of cutting costs by cutting the number of ministries and announcing moves to get rid of State enterprises that have been perennial loss-makers surviving through bail-outs from Treasury and reducing foreign missions, among other measures, more needs to be done.

Apart from trimming the entourages on government trips - who gobble huge sums in allowances, as was the case during Mugabe's time, Mnangagwa and team must focus on implementing those cost-cutting measures.

Talking and doing are two totally different things.

And if Mnangagwa is to prove that he is a better leader than Mugabe, he must walk the talk.

By now, there should have been tangible and meaningful developments to the cost-cutting measures he committed to.

Those top-heavy and unproductive parastatals - where bosses are drawing hefty salaries not sustained by productivity but by bail-outs from Treasury - must be shut down, restructured or merged.

The civil service must be audited to ascertain the numbers and weed out ghost workers.

Government has for long run a bloated wage bill, but has failed to account for the workers.

These are just a few of the many needless expenses incurred by government, hence the huge overdraft.

Mr President, please enforce stringent austerity measures.



- dailynews

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Book unpacks racial, tribal discrimination

by Staff reporter | 21 August 2018 | 11 Views

ZCTU offices shooting condemned

by Staff reporter | 21 August 2018 | 12 Views

Factionalism rears ugly head in Zanu-PF

by Staff reporter | 21 August 2018 | 13 Views

Bosso players letting Ariel down

by Staff reporter | 21 August 2018 | 14 Views

Bukkie wrapped in 'snacks' smugglers appear in SA courts

by Staff reporter | 21 August 2018 | 10 Views

Govts urged to install female chiefs

by Staff reporter | 21 August 2018 | 8 Views

'Reduce presidential aspirants age limit to 30'

by Staff reporter | 21 August 2018 | 11 Views

10 eye Mutare mayoral post

by Staff reporter | 21 August 2018 | 8 Views

MDC Alliance candidate appears in court

by Staff reporter | 21 August 2018 | 8 Views

Zimbabwe: In pursuit of a never-coming democracy

by Learnmore Zuze | 21 August 2018 | 8 Views

Jumbos harass villagers

by Staff reporter | 21 August 2018 | 6 Views

Youth participation in elections hailed

by Staff reporter | 21 August 2018 | 11 Views

Simbisa to expand Nando's footprint countrywide

by Staff reporter | 21 August 2018 | 7 Views

Mnangagwa must resign or face humiliation

by Kennedy Kaitano | 21 August 2018 | 12 Views

Chamisa too hot to handle

by Pardon Maguta | 21 August 2018 | 10 Views

Political grandstanding will not sanitise Mnangagwa legitimacy

by Editorial - newsday | 21 August 2018 | 8 Views

Chamisa's foreign lawyers cornered

by Staff reporter | 21 August 2018 | 11 Views

Mnangagwa scoffs at Chamisa's sugar expert report

by Staff reporter | 21 August 2018 | 11 Views

Chamisa gnaws at Mnangagwa results

by Staff reporter | 21 August 2018 | 12 Views

Mine collapse kills on injures three

by Staff reporter | 21 August 2018 | 8 Views

It never rains but pours for Undenge

by Staff reporter | 21 August 2018 | 9 Views

Chamisa anxious

by Staff reporter | 21 August 2018 | 14 Views

Zanu-PF youths reposses cars from former party MPs

by Staff reporter | 21 August 2018 | 8 Views

MDC Alliance neglects jailed cop killers

by Staff reporter | 21 August 2018 | 5 Views

Chamisa's message to SADC 'negotiate peaceful Mnangagwa exit'

by Staff reporter | 21 August 2018 | 12 Views

ZBC demands $13,000 for Con-Court poll challenge live feed

by Staff reporter | 21 August 2018 | 6 Views

Zimbabwe state security agents assault human rights lawyer

by Stephen Jakes | 21 August 2018 | 5 Views

Cross is a pathological lair - Ruhanya

by Stephen Jakes | 21 August 2018 | 5 Views

PicknPay protesters to appear in court

by Stephen Jakes | 21 August 2018 | 5 Views

ConCourt has a task to determine ZEC errors

by Stephen Jakes | 21 August 2018 | 5 Views

'Mnangagwa not appointed chair of SADC Troika'

by Stephen Jakes | 21 August 2018 | 5 Views

Chamisa to humiliate Mnangagwa at Con-Court

by Staff reporter | 21 August 2018 | 6 Views

Chamisa's expart lawyers refused to submit their CVs

by Staff reporter | 21 August 2018 | 5 Views

Bulawayo congratulates Mnangagwa

by Staff reporter | 21 August 2018 | 5 Views

Reflections on a captured Zimbabwean state

by Tazvi Gamz | 21 August 2018 | 8 Views

Losing Zanu-PF candidate parcels out CFI land

by Staff reporter | 21 August 2018 | 6 Views

Losing MDC MP up for illicit $370,000 diamond deals

by Staff reporter | 21 August 2018 | 7 Views

'Biti's lawyer tortured'

by Staff reporter | 21 August 2018 | 6 Views