Zimbabwe’s 2019 budget: The good, the bad, and the ugly

Verdict

Ncube has done well on measures to chip away at the budget deficit, with his steps on TBs and the overdraft. He has also worked hard to improve the management of public funds.

The government has talked for years about a “one stop shop” investment agency and ease of doing business reforms, without ever showing concrete commitment. In his budget, Ncube finally puts this into action with an allocation of $41 million to set up the Zimbabwe Investment and Development Agency, ZIDA. A ZIDA Bill has been crafted and approved by cabinet.

However, there is also far too little detail on key areas, such as the cost cutting measures.

Overall, the budget leaves Zimbabweans with less money in their pockets, while the government’s only sacrifice is a token 5% salary cut for senior officials; ministers and their directors, state enterprise CEOs and the President.

The austerity is for the poor, and the prosperity for those leading government.

Now that Ncube has presented his budget, his battle is to actually make sure it happens. His strategy to tame the currency and inflation crisis is to attack its roots, which is state spending and borrowing.

He had all the right words, peppered with quotes from renowned economists and philosophers. But all that counts for nothing should ZANU-PF remain stuck in its greedy ways.

Ncube said: “Achievement of the above, will require us to be unflinchingly disciplined, and make hard choices that require us to forego and postpone some expenditure to future years when our economic performance has improved.”

From now on, as he tries to implement what he’s proposed, in the face of inevitable resistance from those who cannot change, his job is going to get even tougher, while his credibility will be placed under even further scrutiny.- NewZwire

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