After the events of November 2017, then Finance Minister
Patrick Chinamasa announced a budget filled with sound bites in what he termed
the “New Economic Order”.
The gullible gave him a standing ovation but alas even by
Zanu PF standards, this so-called budget was the worst in more than two
decades.
Yesterday, Mthuli Ncube presented another hollow fiscal
statement, which fails to deal with real issues and shies away from confronting
the doors of raw State power. In any case, the so-called budget statement is
utterly deficient in addressing the fundamentals and the substance.
The budget fails dismally to deal with the question of the
currency for use in the country and in fact it adds more distortions than
clarity on the issue. The lack of clarity on currency issue is at the centre of
the multi pricing system and a decisive Minister ought to bite the bullet and
make a decision on the matter.
Yet Mthuli, in his budget, ignores the distortions being
caused by the bond note, he proves beyond reasonable doubt that he is scared of
the raw State power which is in the hands of Zanu PF hardliners and
securocratic oligarchs who need to maintain a printing press of sorts for
purposes of patronage.
It is therefore clear that his claim of arresting run-away
expenditure is just but pub talk, as long as the printing press is alive the
state will continue to finance Zanu PF activities and fund the lifestyles of
the elites.
The Minister should have proposed the demonetizing of the
bond note, reverting to a proper multi-currency regime and outlining a path
towards joining the rand monetary union. It is clear that there is a foreign
currency crisis owing to the unproductive environment arresting Zimbabwean
industry as well as exchange and price controls that have resulted in chronic
shortages of basics.
A budget with a wrong diagnosis will not be able to proffer
accurate solutions. Just like the old Zanu PF character, Mthuli also joins the
bandwagon of denial, and he does not take responsibility.
He fails to take responsibility for fueling speculative
behavior in the second generation problems after his reckless announcement of
separating NOSTRO and RTGS accounts as well as the ruthless taxes he imposed.
These also form part of the package resulting in price
hikes.
Mthuli however in his presentation admits part of the
problem is lack of confidence but mumbles without telling us what he will do
about it.
The source of confidence is not reflected in his narrative
yet we in the MDC have always advised that the only way to deal with confidence
issues is to deal with legitimacy issues. Those who steal elections cannot
inspire confidence.
This is directly linked to the issue of reform which Mthuli
mentions in his statement, he speaks of democracy as a panacea to international
acceptance yet on the same day barbaric and shameful fascists assault MDC MPs
in Parliament---an environment of privilege.
The MDC is of the view that his claims of reform are a
foundation built on quick sand.
The reform agenda and international engagement is the only
viable route to debt clearance which the budget as well fails to deal with.
It is still not clear which route the Minister is taking.
The infrastructure thrust he spoke about is easier done
through access of multilateral reconstruction funds. The failure to reform,
coupled with confusion around middle income status, complicates the whole
process.
A lipstick commitment to alignment of laws was made but the
allocation made in respect of Independent Commissions is an insult to their
independence, their capacity to do their work and the ability to hire
professional and competent staff.
The MDC also notes with concern the failure to confront the
land question in the budget.
We are of the view that the budget should have addressed
the following with the view to improve agriculture viability.
1. Bringing finality to the land question. Presently people
are still fighting over land invasions. We restate that there must be a land
audit to ascertain ownership and productive capacity as well as issuing title
to current occupants.
2. Deal with security of tenure. Newly resettled farmers
must be given title deeds to the land so as to ensure they have not only land
use value but exchange value so that farmers may be able to borrow.
3. Financing agricultural infrastructure: In order to fully
empower the newly resettled farmers there is need for seasonal, capital and
loans which can be provided by commercial banks as well as the Rural
Development Fund.
4. Agricultural markets: It is crucial that markets for
agricultural produce are restored. The current situation in the tobacco
industry is unfortunate and must be curbed. Marketing for cereal produce such
as maize and wheat must be given a priority.
5. Investment in equipment: A functional and organized farm
must have access to farming mechanization for tillage, harvesting,
transportation and storage as this is vital for driving agriculture.
6. Harnessing water resources for agriculture: More than
80% of our arable land relies on rain-fed farming but have no access to proper
irrigation facilities.
With all due respect, this budget is a continuation of the
old order of economic lethargy, economic destruction, corruption and patronage.
It does not even address the issue of the usurious 2c a dollar this government
is fleecing from innocent Zimbabweans. The token reduction of five percent from
the salaries of the well-heeled is so measly it will not make any positive
impact.
This so-called budget statement lacks clarity, shies away
from the national questions and must be rejected as It reflects a vampire state
intending to suck from its citizens, a robber state which takes from the poor
to maintain those who fly in chartered Swiss jets.
Clr Jacob Mafume
National Spokesperson
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