Govt Cuts Non-Wage Support as Economic Woes Worsen

The Secretary of Finance, Economic Development, and Investment, Mr George Guvamatanga, has announced that non-wage budget support for November and December 2024 will be significantly constrained.

This decision follows the recent 43% depreciation of the local currency against the US dollar, which has created a substantial mismatch between revenue inflows and local currency expenditures, severely limiting fiscal space for the last quarter of 2024.

In a letter to government departments, Guvamatanga noted that the situation has been worsened by a backdated salary review awarded to civil servants in October 2024. In response, Treasury has implemented measures to curb spending, including deferring local workshops and halving fuel allocations for operational needs.

A revised fuel allocation schedule has been issued to Ministries, Departments, and Agencies (MDAs).

MDAs have been instructed to prioritize their expenditure commitments during this challenging period, as the government faces difficulties funding critical needs such as the 2024 bonus payments, food deficit mitigation programs, and utility bills.