by Business Writer

Ministry of Finance and Economic Development, Permanent Secretary George Guvamatanga says the Second Republic’s fiscal discipline is paying off as Government has weaned itself off from the central bank overdraft facility and also recorded current account surplus last year.

Speaking in a webinar to review the Monetary Policy Statement (MPS) titled ‘Staying on course in fostering price and financial system stability,’ Guvamatanga told participants that the government had cut off wasteful expenditure.

“We are very much on course to sustain fiscal discipline in government. We have cut off wasteful expenditure, curtailed the abuse of Treasury Bills that had been used as a de facto currency over the years, reduced subsidies on utilities like electricity, fuel and maize.

“Government accounts are largely on surplus which is largely a positive sign for the progress we have made so far,” he said.

According to the Reserve Bank of Zimbabwe (RBZ), Government recorded a current account surplus of US$1.1 billion in 2020 and the trend is expected to continue this year.

“We expect a trade surplus of around US$1.4 billion this year owing to a good harvest on the back of good rains this year,” RBZ governor John Mangudya also told participants on the webinar.

Guvamatanga said prospects for a faster recovery in economic performance in 2021 are high, on account of a strong balance of payments position and good agriculture season.