Zimbabwe News and Internet Radio

MDC-T rubbishes ‘thumb-sucking’ budget statement

Zimbabwe’s economy remains stuck in a deflationary dungeon and the absence of economic stimulus measures such as increasing domestic consumption and gross fixed capital formation is inimical to growth, says the main opposition Movement for Democratic Change (MDC).

Tapiwa Mashakada
Tapiwa Mashakada

Commenting on the 2017 budget statement delivered by the Minister of Finance and Economic Development, Patrick Chinamasa last week, Tapiwa Mashakada said the Zimbabwe economy was sure to register monthly negative growth rates on the back of fiscal imbalances and a persistent deflation during 2017.

Mashakada, who is the MDC Secretary for Finance and Economic Affairs, scoffed at the USD520 million capital budget announced by Chinamasa pointing out that such a paltry sum cannot spur growth. 

“The 1.7% forecasted growth rate for 2017 from 0.6% in 2016 will largely depend on the resolution of the liquidity crisis, a surge in productivity, confidence, macro-economic and fiscal stability” he said.

All these aspects, said Mashakada,“are currently beyond Zanu PF’s control. The 2017 growth forecast was based more on thumbsucking not on any realistic macro-model.
“The projection becomes unrealistic and spurious if you consider the effect of climate variability on Agriculture,” he said.

In Mashakada’s assessment, a projected budget deficit of USD400 million would be inconsistent with a projected growth mode.

“A figure of USD180 million for paying interest on debt is not compatible with a growing economy. Employment costs gobbling 92% of the total budget blunt economic growth.” he said.

Other economic analysts have similarly dismissed Chinamasa’s budget projections as patently unrealistic and far from providing answers to the country’s comatose economy.
Ends. Nehanda Radio