ED commends Prof Mthuli Ncube over budget

“However, one of the big disappointments is the small allocation to independent commissions. If the money is divided among the commissions it’s nothing especially when we look at the MPRC which needs offices, decentralise its work and do outreaches,” said Rev Useni.

Mr Butler Tambo, an economic analyst said the budget is not as realistic as one would have thought especially on non admittance of the fact that we have a three tier payment system, the USD, transfer and the bond. He was however happy with the Government’s pro-devolution stance. “This was not addressed by the Minister. We were expecting a solution going forward as far as the payment system is concerned. Setting aside money for the installation of provincial councils and the implementation of devolution of power is a positive development and good concept. The money might not be enough but it will kick-start the discussions around it,” said Mr Tambo.

Zimbabwe Teachers’ Association (Zimta) secretary general Mr Tapson Nganunu Sibanda expressed disappointment on the budget statement, saying it had nothing for the teachers.

“The budget will bring more misery than joy to an already impoverished worker in general and an already incapacitated teacher in particular. Teachers have been living under severe austerity since the 1990s, the days of the then Finance Minister Bernard Chidzero up until today.

“There is nothing to celebrate in this budget statement as teachers. The budget leads the country to a new trajectory of a neo-liberal economy. The budget is anti-worker, antipeople and anti-poor,” said Mr Sibanda.

He said teachers needed a cost of living adjustment, considering that since September 2018, their salaries have in essence been devalued by not less than 300 percent.

Explaining the budget Prof Ncube said the fiscal consolidation measures beginning 2019 were expected to give a strong rebound in growth to above seven percent from 2020.

According to Prof Ncube the primary objective of the 2019 budget policy statement is to stabilise the economy by targeting the fiscal and current account twin deficits. The two are seen as the key factors behind the problems facing the economy. The budget also seeks to stimulate productive sectors by prioritising infrastructure rehabilitation and development, promotion of good practices in environmental management and supporting key pillars in sustaining the goal of inclusive and shared growth.

These include boosting food security and protection, human capital development and demographics, inclusive private sector led growth. The fiscal measures are also aimed at improving efficiency in the running of institutions and governance, enhancing accountability; and embracing opportunities and preserving peace and security. With nominal GDP seen at $31,6 billion in 2019, he said, the economy can generate revenues amounting to $6,6 billion next year, including retentions ($400 million), taxes ($6,037 billion), and non-tax at $162 million. — @pamelashumba1