By Business Reporter-Civil servants have raised alarms over delayed November salaries and bonuses, fueling concerns that the government is struggling to meet its obligations amid the rapid decline of the Zimbabwean dollar (ZiG).

On Tuesday, the Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) revealed that most of its members had yet to be paid. 

In a statement posted on X (formerly Twitter), ARTUZ criticised the government’s financial mismanagement:

“We are receiving angering news. The government of @edmnangagwa has failed to pay salaries on time to civil servants. Approximately half of the civil service population is still to receive their full paltry monthly allowance. We have seen this government blowing millions of dollars on one junket after the other. They must pay in time or face the anger of hard-working civil servants.”

The delayed payments come from drastic budget cuts announced last week, including reductions in fuel allocations, foreign travel, and workshops for civil servants. 

These measures reflect the government’s struggle to stabilise the economy after the ZiG depreciated by a staggering 43% against the US dollar in September 2024.

In response to the financial crisis, the Treasury issued a directive to government departments on November 13, urging them to limit spending to essential expenditures for the rest of the year. 

A circular addressed to Permanent Secretaries and the Clerk of Parliament outlined the challenges of the currency’s collapse.

Finance Secretary George Guvamatanga attributed the delays to a mismatch between revenue inflows and mounting expenditures.

“As you may be aware, the local currency unit (ZWL) recently depreciated by 43% against the United States dollar, resulting in a substantial mismatch between revenue inflows, collected in some cases with a one-month lag, and local currency expenditures that immediately adjusted to the new exchange rate,” Guvamatanga explained.

He also noted that the backdated civil service salary adjustment in October had further strained the government’s fiscal capacity. As a result, critical obligations such as bonus payments, food security programs, agricultural inputs for the upcoming farming season, and utility subsidies remain underfunded.

To mitigate the crisis, the Treasury outlined several cost-cutting measures:

• Prioritisations of payments for outstanding obligations.
• Foreign travel only approved if externally funded.
• Suspension of local workshops unless pre-approved by Treasury.
• A 50% reduction in fuel allocations for operational activities.

While these steps aim to contain the fiscal crisis, they expose the government’s inability to manage public finances effectively, a problem rooted in years of economic mismanagement.

The country’s financial instability is the result of decades of failed policies and systemic corruption. 

The reintroduction of the Zimbabwean dollar in 2019, coupled with erratic monetary policies, has exacerbated economic volatility. 

Hyperinflation, unsustainable debt levels, and fiscal indiscipline have compounded the nation’s woes, leaving its financial system teetering on the brink of collapse.