Government facing a massive financial crisis
Friday, 14 December 2012
Economic analysts say that the country is faced with an economic crisis even without economic sanctions being imposed.
Ministry Secretaries have already sent circulars to all institutions under ministries to stop paying over time with immediate effect. State sector employees are still unsure of getting their December salaries leave alone a bonus for the season.
A special circular by the Finance Ministry has asked ministries to stop special payments being made to ministers, deputy ministers and other executive level officers and to limit the fuel allowances as well. The Ministry has proposed that the ministries could even decide to either limit or stop the fuel allowances given to the executive level officers.
Economic analysts show that the government would not be able to even make the interest payments on loans obtained if the current situation does not ease at least by mid next year. The country is likely to record a minus growth rate as a result.