Mthuli Ncube tells Biti he did nothing about clearing Zimbabwe’s debt when he was Finance Minister- NO NO to budget in US dollars

On disbursements to September, that the budget utilisation is not fast enough – as I said, it has got to do with the availability of cash and also the utilisation rate and absorption capacity of the ministries themselves. Some of them are absorbing their budget much faster like the Ministry of Agriculture, Ministry of Transport, Ministry of Defence, President’s Office – Ministry of Finance not quite. You will find that it is mainly the infrastructure ministries that are the fast burners of cash. The contractors are pushing that they want to get paid for their contract. So we understand and we have to pay them.

Hon. Biti then makes a comment about parallel budgeting and why we always come for condonation. Look, I have come to this House to seek condonation and that is how it works. That is not breaking the law. I have come to present supplementary budget and you have been so kind as an august House to allow me to have a supplementary budget. That again is within the law. That is how it works. So there is nothing wrong in coming to this august House to seek condonation. Nothing wrong in coming to this House to seek permission to have a supplementary budget and it is in order.

I think Hon. Biti went overboard on the IMF statement. Let me assist. I have it here with me and I approved it because they cannot release it without me approving it. When I read this, it is not as negative as Hon. Biti purports it to be. For what it is worth, let me just read one or two paragraphs. It says here, at the conclusion of the IMF, Mr. Ghura  who is  Mission-in-Chief issued the following statement, “ the Government provided a swift response to the COVID-19 pandemic supporting businesses, livelihoods and the health sector resulting in real output growth of 8.5% in 2021 under scoring the economy’s resilience, renewed domestic external shocks such as inflation surge, erratic rainfall, electricity shortages, Russia-Ukraine war are however adversely affecting economic and social conditions, real GDP growth is thus expected to decline to about 3.5% in 2022” That is their figure. Mine is 4%. 3.5% is still very good.

“These multiple shocks will continue to weigh on Zimbabwe’s growth prospects, currency and price pressures which emerged earlier this year largely owing to a spike broad money growth and the official exchange rate misaligned with market fundamentals and so forth”. The IMF Mission notes the authorities’ efforts to stabilise local exchange rate market and lower inflation. In this regard, the swift tightening monetary policy along with the greater official exchange rate flexibility – we moved to the willing-buyer willing-seller basis – and a prudent fiscal stance are policies in the right direction”. We are being commended. My learned friend, I am highlighting that he should not be selective. He should be balanced and the statement is very well balanced. It is quite positive and complimentary. While he raises issues one should always listen when colleagues raise issues. I think his projection of that statement was slightly selective.

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