Harare, 5 May-(ANA)-Teachers in Zimbabwe have called off a strike despite their wage demands not being met, while the government has slashed school fees for the new term.
David Coltart said the government had no money to raise their salaries, but he had agreed to help teachers by giving their children free schooling.
Teachers' groups said they accepted the government was struggling for funds and needed time to raise revenue.
Teachers are paid $100 (£66) a month but unions wanted four times as much.
He said they were pleased Zimbabwe's government had agreed to cut school fees from between $50 (£33) and $150 (£100) a term to a maximum of $20 (£13) and that teachers' children would be exempt from fees.
Most Western donors, however, remain reluctant to restore aid to Zimbabwe while Mr Mugabe remains president.
Last week, African countries agreed to give Zimbabwe $400m-worth of credit.
Teachers and other public sector workers agreed to end industrial action in February after the government agreed to pay their salaries in foreign currency because of massive inflation.
Zimbabwe's economic collapse had left the country's currency virtually worthless - and many civil servants unable to afford even the bus fare to work.
The coalition government formed in February between President Mugabe and Prime Minister Morgan Tsvangirai, leader of the Movement for Democratic Change, faces calls from eviscerated public services across the spectrum for more funding.
On Friday, Mr Tsvangirai told a Labour Day rally that the government was broke and could not afford to pay any more than the allowance of $100 a month.
He said this was also what Mr Mugabe was being paid. (ANA)
