by Gift Mashoko
Minister of Finance and Economic Development Professor Mthuli Ncube has highlighted that Zimbabwe adopted the Transitional Stabilisation Programme (TSP) which is a response to normalise things in the country.
Speaking to SABC economic reporter Thandeka Gqubule-Mbeki at the World Economic Forum in Davos, Minister Ncube highlighted that the TSP might be painful at first but it will help Zimbabwe in improving the economy.
“We have a whole plan called the Transitional Stabilisation Programme (TSP). There i note the word stabilisation. When you are coming from a position of disequilibrium, when things have been in decay for the past 20years literary since 2000 then stabilisation may actually cause turbulence and that is what is going on in a way in the economic front.
The TSP is a two year agenda up to 2020 then beyond 2020 we have another 5yr strategy and another 5yrs up to 2030. We have a whole vision called the 2030 vision which aims to take Zimbabwe up to upper middle income status that year. We are already a lower middle income country with a GDP per capita of $600 per person and we want to double that by year 2030.
Asked if the TSP had austerity at its roots, Minister Ncube highlighted that the budget he announced is themed Austerity for prosperity. He also explained on measures Zimbabwe needs to take so as to succeed economically.
“After launching the TSP, I also presented a budget for the Government and its theme was Austerity for Prosperity. That really is a message also for Government itself which is that we have to live within our means. We know it is tough, it is painful, but it is doable.
“In that realm, that is why we said let us focus on fiscal discipline. That is within the TSP within the budget as well. On Fiscal discipline we live within our means, restructure the civil service and reduce government waste. We also cut down our wages by the way as Ministers, from the President downward. That is on the cost containment front.
“On the revenue front we are improving tax collection for example we pushed this 2% tax on financial transactions. We also want to reengage with the international community and pay off what Zimbabwe owes to the international community.
This needs to be paid off because these are what we call creditor financial institutions. The arears with these institutions have meant that we have lost so many credit lines for the banking sector in Zimbabwe,” he said.
