Finance Minister Professor Mthuli Ncube, this week presented a strategic paper for the 2020 National budget to the Cabinet of Zimbabwe.
The strategic paper is premised on the understanding that the austerity phase of reforms will be over by the end of 2019 thereby ushering in an era of economic growth and productivity according to Information Minister Professor Amon Murwira.
“The economy is projected to grow in 2020 by 4.6 %. Furthermore, price increases which currently present a major challenge are expected to stabilise on the back of continued implementation of fiscal and monetary reforms supported by the structural and supply-side measures,” Murwira said.
“The 2020 national budget will seek to consolidate the macro-fiscal stabilisation gains secured this year 2019.”
The Information Minister told journalists that Mthuli’s presentation to the Cabinet took note of the ongoing reforms which are premised on the 2019 national budget in austerity for prosperity as outlined the Transitional Stabilisation Program (TSP).
“Notable milestone proposal in this regard include fiscal consolidation, monetary policy restoration, liberalisation of the exchange market, re-engagement and a number of government structural reforms aimed at improving the business environment to support the productive sectors,” Murwira said. (sic)
“These reforms present a firm further step for the rebound of the economy in 2020 and beyond.” (sic)
Ncube introduced austerity measures, which have been described by President Emmerson Mnangagwa as painful in order to correct the fundamentals of the economy which has been misbehaving in the past years.
Ncube addresses the 2020 National Budget strategy against the background of rising inflation and striking workers that characterise 2019.
“This paper took note that 2019, Zimbabwe’s economy suffered from severe exorbitant shocks arising from Eli-Nino induced drought and Cyclone Idai which constrained agricultural productivity and electricity generation and bringing about general underperformance of the economy,” Murwira said.