Mthuli Ncube kicks off on a right note- reduces expected deficit from $100 million to $19 million


The Finance Minister has pledged to cut government expenditure in return for tough revenue collection measures including the 2 percent tax that he introduced.

He was, however, under pressure from the legislators to buy them vehicles which they said were the tools of their trade.

Ncube indicated during the cholera outbreak that the government would not buy cars for Members of Parliament and government ministers.

He, however, told the legislators at the pre-budget seminar that the government would buy them vehicles.

“I am on the side of making sure that you get your vehicles, but we have been debating as to whether we give you a 100 percent loan, partial loan or zero loans so we have that action on the table but either way vehicles are on the way,” he told the legislators.

Zimbabwe has 350 legislators, 270 in the National Assembly and 80 in the Senate.

Reserve Bank of Zimbabwe governor, John Mangudya, told the legislators that Zimbabwe did not make any cars so their demand for vehicles also meant demand for foreign currency that was not readily available.

“If the expenditure is coming, it also has to be funded. Right now you are asking about your vehicles, those vehicles are imported also and they need foreign currency. This country does not make vehicles,” he said.

“I agree that these are your tools of trade; very good tools of the trade but those tools of the trade shall end up in my office looking for foreign currency. If the Minister says let’s look for foreign currency, I will look for it and buy your vehicles.”


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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


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