HARARE, Nov. 18 (AGCNewsNet) – The Zimbabwean government has introduced stringent measures to combat a worsening fiscal crisis as the local currency continues to depreciate sharply against the US dollar. 

Finance Secretary, George Guvamatanga, announced a ban on government-funded foreign trips and workshops, along with a 50% reduction in fuel allocations for state operations, as part of the cost-cutting measures. 

In a letter dated November 13, Guvamatanga detailed the challenges facing the country's economy, citing the 43% depreciation of the Zimbabwean dollar (ZwG) against the US dollar. This rapid decline has created a significant fiscal imbalance, with government expenditures adjusting to the new exchange rate while revenues lag behind. 

"The local currency's depreciation has severely constrained fiscal space for the last quarter of 2024," he wrote, noting that revenue inflows are collected with delays while expenses adjust immediately to the new rates. 

To manage the financial strain, the government will focus its limited resources on: 

- Civil servants' bonuses 

- Food aid programs

- Agricultural support for farmers

All non-essential spending by government departments and ministries has been suspended unless explicitly approved by the Treasury. 

The sharp depreciation of the Zimbabwean dollar adds to Zimbabwe's ongoing economic woes. In late September, the Reserve Bank of Zimbabwe allowed the Zimbabwe Gold (ZiG) currency to drop by over 40% to 24.3902 per US dollar. The currency has since fallen further, reaching 25.2842 to the dollar on Monday. 

Despite launching the ZiG in April as the country’s sixth attempt in 15 years to stabilize its currency, its decline reflects deep-rooted economic challenges, including high inflation and dwindling fiscal reserves. 

The measures underscore the government’s struggle to balance critical expenditures with the pressing need for financial discipline, as Zimbabwe's economy remains under intense pressure.