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Tinashe Eric Muzamhindo writes :
There is need for proper understanding, or rather political and economic orientation of what exactly is on the ground. The budget must be defined in simpler terms, and refined for ordinary people to understand, exactly what is going on the ground. Literally, the focus is more improving the economy, leaving out or widening the deficit, or gap.
This afternoon, I have been going through the budget presented by the Finance Minister, Prof Muthuli Ncube, and literally, whatever that means, WE NEED TO FIX THE POCKET, THE POWER TO BUY.
The budget is likely to trap us in four key areas :
1. Appetite for more borrowing to sponsor consumption ( BORROWING)
2. Debt trap
3. Widening the gap between the poor & the rich
4. High taxation
There is need to deal with debt trap. I’m not sure about our local and external debt, it was not reported. We might have to review the figures.
We can’t sustain the economy through Donor funds or diaspora remittances. We need to fix the economy.
Let’s have short term plans to deal with problems at hand.
We need a quick remedy to deal with the following ;
1. Threats of inflation
2. Cost of living
3. The incapacitation of industry
4. Root of corruption
5. Cancer of corruption
6. Bloated public sector
7. Policy inconsistencies
8. Grey areas around the economy
9. Legislative agenda
10. Review of taxation
11. Investment laws
LET’S FIX INDUSTRY
Let’s deal with ailing industry. Industry needs funding, and for us to have more revenue, we need to increase production levels. Production is important ;
(a) Creating employment
(b) widening taxation
(c) Technological advancement
(d) Increase in exports
(e) Confidence in the banking sector
(f) We restore the buying power
(g) Competence will be ahead of nepotism
(h) Trade imbalances will be cleared
(I) Regional Integration
( j) Fund local initiatives
(k) Local promotion/ content will be a priority
(l) Increase of Foreign Direct Investment ( FDI)
( m) Domestic / Local trade promotion
(n) Debt obligation will be dealt with
(o) Participation of Zimbabwe on International platforms
(p) Cream or expertise will be order of the day
(q) sanity will prevail in the industrial sector
(r) The role of private sector must be activated.
(s) We need new investors in all sectors of the economy
(t) We need a proper Development agenda, propelled by a proper Economic Indaba. We need to debate the economy
(u) Are we addressing the debt obligation or rather crisis?
( v) We need to pay attention to Economic indicators
( w) We must eat what we kill
(y) Institutional reforms are vital for progress
( z) Reform the bloated public sector
Honestly, we can’t be importing candles, or needles, or matches etc. We have to move away from that.
Whilst there are still on – going consultations on budget review, there are two aspects which I feel, the Finance Minister must deal with, RESTORATION OF THE POWER TO BUY, AND FIXING THE POCKET”.
let’s have short term plans. Besides raising stimulus package from international practice, we can rather work out an equation from local content, let’s raise around $ 10 Billion ( USD), and pour funding into the industrial sector, mainly critical sectors of the economy.
Agriculture sector
– Farmers must borrow directly from banks
– Produce enough for domestic consumption, and for exportation
– Collateral security for farmers is key. Let’s work out the title deeds issue, and remove the 99 year lease
– Food security must be a priority
– Development partnership, with external partners.
– Government’ s role should be facilitation of markets ONLY, and also regulation of prices
The budget must reflect the situation on the ground, and break the York of POVERTY.
Tinashe Eric Muzamhindo is the Head of Zimbabwe Institute of Strategic Thinking – ZIST, and can be contacted at tinamuzala@gmail.com