by Derick Tsimba

Minister of Finance and Economic Development, Professor Mthuli Ncube’s statement in Harare centred on fiscal measures for reversing fiscal dis-equilibrium. He indicated that these measures were going to restore macroeconomic stability.

“In order to complement and support the Monetary Policy measures that have been announced by the Governor of the Reserve Bank of Zimbabwe, I hereby announce a number of fiscal measures and the fiscal roadmap,” said the Minister.

The Minister also said various measures had to be taken in order to reduce budget deficit which was now at unsustainable levels. These measures are necessary for effective fiscal and monetary coordination in order to restore macroeconomic stability.

“The budget deficit has increased over the years to unsustainable levels. Various measures need to be taken in order to reduce it, so that it ceases to be an albatross on the growth of the economy,” said the Minister.

Fiscal interventions proposed by the Minister  include the following; financing Governments deficit, encouraging issuance of infrastructure bonds, reforms of State owned enterprises, external debt arrears resolution, creating a regional fuel port, improving revenue collection measures, effectiveness and efficiency in revenue collection and re-engagement of international financial institutions and partners.

“...Treasury will seek to finance Government’s vital socio-economic development programmes by use of instruments that ‘crowd’ the private sector, including public private partnerships or Government guarantees to financial institutions.

“One long term solution is to create a world class ‘Regional Fuel Dry Port’...vision for this inland fuel port will turn it into a vital regional fuel port that will serve neighbouring countries,” said Prof Ncube.