Liquidity Crisis and Service Delivery in Zimbabwe Local Authorities

Abstract

The cash shortage in Zimbabwe local authorities has now reached unprecedented levels. With local authorities failing to pay salaries and allowances as expected and creditors are accumulating. This situation has developed because revenue collections are low, traditional sources of revenue have gone dry and Government has also stopped its assistance to local authorities. The liquidity crisis has had a negative effect on service delivery. There is no-more service being offered by local authorities and the single major reason is liquidity.