The government has said that its decision to freeze recruiting workers in the public sector has resulted in monthly savings of $10 million from the wage bill, which now stands at 65 percent of revenue.
Finance secretary, Willard Manungo told the Parliamentary Portfolio Committee on Finance on Monday:
The bid taken by government to try and contain recurrent expenditure, especially those to do with the wage bill is that we are now saving $10 million per month in terms of how much we are spending on employment costs.
However, the revenues have not responded positively and there is still a mismatch between expenditure and revenue realisation, and the biggest challenge remains the issue of employment costs where we continue to spend 65 percent of the budget just on wages.
More: Financial Gazette