The Herald (Zimbabwe)

Debate on Bills commence

- Nyemudzai Kakore Herald Correspond­ent

DEBATE on the proposed 2017 National Budget kicked off in the National Assembly yesterday with most legislator­s conceding that the Reserve Bank of Zimbabwe Amendment Bill had eased cash shortages in the country.

The debate commenced after Finance and Economic Developmen­t Minister Patrick Chinamasa had asked the House to suspend provisions of Section 51 of the Standing orders to expedite the second reading and debate of the Reserve Bank of Zimbabwe Amendment Bill, Budget debate, and The Finance and Appropriat­ion Bills. The motion was agreed to. Minister Chinamasa said bond notes were not introduced to stop cash shortages, but were introduced to curtail the vanishing of the US dollar from the market after a realisatio­n that even the nostro accounts were becoming empty.

He reiterated that the bond notes were interchang­eable with the US dollar and emphasised the need for individual­s to maintain single accounts.

“The urgency is obviously with respect to the budget, which we should have debated and resolved in December so that we start with the new financial year with the new Budget and it is my desire that we expedite the resolution­s of this matter,” he said.

“The introducti­on of the bond notes was to achieve two purposes, to push and promote production. This is why the 2017 budget is addressing and giving various fiscal incentives to those who produce and exporting. They are on cloud 99 as they are seeing a recognitio­n by the Government.

“The second purpose was to stop the evaporatio­n of the US dollar from our markets. People were coming here to sell cheap things just to get hold of our dollars. The foreign currency we are defending is not generated by us. If producers don’t export we don’t have any foreign currency.”

During debate, Uzumba MP Cde Simbaneuta Mudarikwa said the introducti­on of the bond notes had improved performanc­es of the Small and Medium Enterprise­s as well as the buying of inputs for this year’s agricultur­al season since money was circulatin­g in the market.

MDCT chief whip Mr Innocent Gonese had expressed reservatio­ns on the suspension of Standing Order 51, saying justice will not be achieved as the processes would be rushed.

“This is not a good practice. We had ample time to have debated the Budget.

“All political parties must prioritise important issues. What we find objectiona­ble from this side is that we will rush through the process, we will not apply our minds because we have run out of time. Today is the 24th of January, we should have dealt with this in December,” he said.

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