The government of Zimbabwe has said that it was failing to meet demands by workers due to other financial obligations preoccupying it right now. Therefore, “a review of the cost of living was definite in 2020”.
The Cabinet observed that among other things, the government lacked the financial legroom due to:
- Intended annual bonus payment (November and December) that will take a significant portion of resources.
- The need to import grain to supplement grain reserves;
- The need to support the Presidential Inputs Support Scheme by providing vulnerable households with agricultural input;
- The government was subsidising on transport through ZUPCO and the recent purchase of 15 additional Public Service buses;
- The budget cycle which is coming to an end making it difficult to get additional resources from the current budget.
Meanwhile, the government shall continue to cushion workers from the extra burden imposed on them by the deteriorating economy.
More: The Herald