Vice President (VP) and Minister of Finance Ndaba Gaolathe has come out in defence of the staggered payment plan for public employees salaries which was adopted on April 1st 2022.
Gaolathe stated this in Parliament today responding to a question by Member of Parliament (MP) for Kanye West Victor Phologolo, who had asked if the government would continue with the plan from the past regime.
Phologolo further enquired if the payment schedule has been favourable to small businesses particularly by the taxi industry who raised the concerns with him.
In response to the questions before him, VP stated that the move was simply to ensure that there is equal distribution of money throughout the month by paying employees weekly instead of monthly.
“This was part of the government's initiative to support local businesses by ensuring continuous economic activity through equitable distribution of money throughout the month; moreover it was then intended to reduce overcrowding at business places and malls,” Ndaba said.
VP stated that the undertaken payment plan has seen great results since being implemented.
“We strongly believe that the primary objective of this initiative which is to ensure equitable distribution of money throughout the month thus promoting economic activity has been achieved to some extent,” Ndaba said.
He said improvements have been recorded across all different businesses inclusive of the taxi industry.
“We have noted improvements, improved performances of local business, including SMME’s in which the taxi industry forms part of,” he said.
Gaolathe indicated that his ministry undertook a survey to determine the effectiveness of the payment plan and back it up.
“The results have been positive in terms of the issue of spreading economic activities through the month and the reduction of overcrowding in places of business. The results are based on seven sectors of the economy both government and private,” he said.
With that Gaolathe said the results show that the government should rather continue with this plan as it might be opposed to revise it.
“It turns out or the study reveals that more than 50% of the sectors would actually oppose the government reverting to the old system. In addition the majority stated they have not incurred any additional costs implications and are experiencing positive results,” he said.
