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Govt runs out of funds for salaries

    JOHANNESBURG

    Civil servants in Zimbabwe could go without pay in the next few months as the government battles to raise salaries for an estimated 140,000 employees, ‘The Financial Gazette’ reported on Thursday.

    Treasury sources were quoted as saying that funds for the civil servants’ salaries ran out in June and money to pay July and August salaries was only drawn from expenditure cuts by ministries. The sources said there was now uncertainty over the civil servants’ salaries for September and October, raising fears that the government might be forced to increase its borrowings from the domestic banking sector and add more pressure on interest rates.

    This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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