Zambian president Edgar Lungu has issued a directive to cut salaries of highly paid appointees including himself to bring down the government expenditure. The saved resources will be used for the uplift of the poor and downtrodden.
Coming close on the heels of the recent tariff hikes on fuel and electricity announced by the Energy Regulation Board on December 26, 2019, the measure has both economic and political undertones. The salary reduction is going to affect all non-unionized public employees in the later stage.
Explaining the rationale of the recent tariff hike, President Lungu said those measures were necessary because of the precarious financial position of the country. He also hinted at more such measures to save money and divert the saved resources to pro-poor projects. These cost cutting measures would bring about an economic rebound in 2020. There is also a possibility of considerably cutting down the travel expanses of senior government officials, which add up to quite a tidy sum.
As a part of the cost cutting measure, public officers in the higher salary bracket would be subjected to 20% cut. The middle level officers have to bear with 15% cut and the lower rung officers may have to take a 15% hit on their salaries. The government directive issued in this regard did not specify how long the cut would continue. However, analysts feel that it might continue for sometime since the economy might take a longer timeframe to rebound than what it was expected earlier.
The President assured that the proceeds of the wage cut would go directly towards funding projects aimed at the poor. By sacrificing 50% of his salary, President Lungu is trying to set an example for others to do so. But a few political analysts say that it should be read more as a political gimmick rather than an austerity measure. He wanted to send the right vibes to the people who are reeling under pressure on account of the recent fuel hike and spiralling inflation.
