Gift Mashoko
Minister of Finance and Economic Development, Professor Mthuli Ncube has revealed that the New Dispensation came in to improve and correct the wrongs that the old dispensation had left adding that the economy is experiencing a surplus.
Responding to questions raised during a Parliamentary seating yesterday, Professor Ncube highlighted that since his assumption of office, there have been a surplus since they eliminated deficits.
“The fiscal position of the country has been turned around in 6 months. We have eliminated the deficits on a month by month basis, we have surpluses and now I have just stated that we start focusing on how to deal with social protection issues so as to protect vulnerable members of our society from the badgering of inflations including the drought and cyclone.”
He highlighted that the surplus is in both RTGS and USD and it is about $600 million RTGS and US$100 million. He said the surplus had helped in areas like cushioning and giving salary increments to civil servants, helping out Cyclone Idai hit areas and victims and some being budgeted for the drought relief.
Minister Ncube said that the total use of the USD in Zimbabwe had made it difficult to conduct its own monetary policies independently.
“The USD destroyed this country’s ability to conduct its own monetary policy completely. So the central bank has taken out of all monetary policy ability and what was left was fiscal. What we did on the 1st of October last year was to begin the process of restoring monetary policy as an additional tool in our tool box to deal with macro-economic issues,” he said.
