‘Empty’ budget won’t boost economy

via ‘Empty’ budget won’t boost economy 27 November 2014

FINANCE minister Patrick Chinamasa’s $4.1 billion 2015 national budget has been dismissed as a “mere formality” with no clean plan for attracting to attract foreign direct investment and reviving the country’s struggling economy.

Former finance minister, Tendai Biti said the statement which was presented Thursday afternoon “is just a formality that Chinamasa had to do although there is nothing to expect from it.

“The growth target of 3.2 percent is a dream. This country needs a serious relook in terms of policy and governance. There is need to revisit the indigenization policy to ensure that we attract foreign direct investment.”

He added: “This is a feja feja economy that these guys are running. I don’t blame him much because he has nothing to do but to do what he did today.

“But the truth of the matter is there is nothing to talk about next year. He has confirmed it himself that things are tight and money is not coming into the country.”

In his budget, Chinamasa said 80 % of the revenue for next year is expected to be for salaries while eight percent for capital expenditure.

“This is mediocre that we seeing in this country, Zanu PF is still blaming sanctions in this day when it is their failure which is key and policy pronouncements,” the former head of treasury and now leader of a breakaway MDC said.

Foreign Affairs deputy minister Christopher Mutsvangwa was of the contrary view saying the budget statement encouraged foreign trade.

“The narrative presented in the house is one which clears the air on a number of issues and it’s a narrative to the effect that Zimbabwe is ready to do business with everyone,” Mutsvangwa said.

“The talk of openness to investors and plans to easy ways of doing business in Harare will definitely help lure capital from across the world,” he said.

Chinamasa announced that government would treat the black empowerment policy compelling foreign companies to cede their stake to local on a case-by-case basis through line ministries and that the 51/49 mix will remain an aspiration but not cast in stone.

But according to Elias Mudzuri, a former cabinet minister in the inclusive government, this could be abused by “some corrupt people and in the process chase away potential investors.

“Real investors want the law dealt with away, it’s just helpless and something ought to be done correct by this government. This is a wasted time for me because there was nothing new there and the minister just made an empty statement that will send this country into disarray and economic collapse,” he said.

“If you look at the figures of unemployment and company closures, it is something that Chinamasa should have addressed, but instead he did the opposite, chasing away money through his reaffirmation of the indigenisation law,” Mudzuri added.