Government’s fiscal consolidation measures and other
initiatives introduced into Zimbabwe’s economic programmes should see prices of
goods starting to drop from next month, Finance and Economic Development
Minister Professor Mthuli Ncube has said.
In a pre-recorded Governors’ Statement released here during
the 54th Meeting of the Boards of Governors of the African Development Bank and
the 45th Annual Meeting of the African Development Fund currently underway at
the Sipopo Conference Centre, Professor Ncube said the reforms introduced under
the Transitional Stabilisation Programme were starting to bear fruit.
“The reforms being implemented by Government under the
Transitional Stabilisation Programme of October 2018 to 2020, are beginning to
show positive developments as the twin deficit challenge of the fiscal and the
current account are coming under control.
“Government has started realising a budget surplus. On the
other hand, with regards to prices, fiscal consolidation measures, reinforced
with a tight monetary stance together with liberalisation of the exchange rate
are containing inflationary pressures which are expected to slow down in the
third quarter of the year,” he said.
He said the positive trajectory was achieved through
containing expenditures by reducing the wage bill and plugging revenue leakages
through improving the Zimbabwe Revenue Authority (ZIMRA)’s Tax Management
Revenue System, and revenue enhancement measures such as a two percent
intermediate money transfer tax, among others.
The 2019 Budget, Professor Ncube said, primarily targeted
macro-economic and fiscal stabilisation and implementation of quick win
flagship and high impact projects and programmes, which will lay a solid
foundation for private sector led growth.
He however, reiterated that the 2019 GDP growth rate was expected to be
weighed down due to unfavourable El-Nino induced drought, the devastating
Cyclone Idai, foreign currency shortages and constrained spending being imposed
by fiscal reforms.
“In addition, challenges in fuel and electricity
availability are also factors weighing down economic performance,” he said.
Herald
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