Fin24

Revenue crunch may shut Zimbabwe govt

2012-03-14 16:57

Harare - Zimbabwe’s government faces a shutdown because projected revenue from the diamond industry has failed to come through, Finance Minister Tendai Biti warned on Wednesday.

“Diamonds will have to deliver, otherwise the only thing we have to do will be to pay wages and government will have to close,” Biti told reporters.

“We cannot have a situation where 70% of revenue is going towards wage demands. That’s not an acceptable position. Wages are crowding out other government expenditures,” he said.

Biti said according to the mines ministry, diamond auctions had not taken place in 2012 before March.

Biti is a member of the opposition Movement for Democratic Change which is in an uneasy coalition government with President Robert Mugabe’s Zanu-PF party.

Zanu-PF controls the mines ministry and is therefore seen as profiting from the diamond sector.

Zimbabwe’s economy has been in a tentative recovery after a decade of steep decline, but with unemployment at 80% its tax and revenue base remains extremely low.

Comments
  • clinton.badenhorst - 2012-03-14 17:28

    Can you see Malema? This is why we should NOT nationalise our mines!

  • acsteyn - 2012-03-14 17:32

    Asb BOB for a loan. Nicely.

  • Eric Mdudus Shaku - 2012-03-14 17:47

    what will happen after crunch or it will be survival of the fittest!

      William - 2012-03-15 13:51

      They will borrow another $50 billion from us here in SA. It will be given at almost zero% interest because ZANU-PF is a revolutionary organization like the ANC. Another $50 billion worth that should have gone to feeding, educating & employing South Africans ends up in Bob Mugabe's toilet.

  • Itu Santino Cortez - 2012-03-14 18:17

    Can someone please tell me wat is the current exchange rate looking like for the Rand = Zim Dollar and the US Dollar = Zim Dollar ? {No pun intended}

      Diana - 2012-03-14 18:37

      Zim dollar doesnt exist anymore. They use our currency as well as U$D and British pounds. Well done uncle Bob!

  • Steve - 2012-03-14 18:29

    Hellooooooo all you idiotic Malema supporters of nationalisation... Read this sloooooooowly and understaaaaaaaaand what the implications (http://en.wikipedia.org/wiki/Implications) are!!!

  • Diana - 2012-03-14 18:32

    Tell me the name of a single one successful country of the african continent ruled by 100% native government! Wherever greedy and reckless involved the state goes into nothing.

      Diana - 2012-03-14 18:58

      Agree with you but unfortunately the majority of SA still gonna vote in favor of African Numerous Crooks. Yet its not a reason to low down our weapons.

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