National Budget fails to address real issues: Analysts

via National Budget fails to address real issues: Analysts 28 November 2014

BULAWAYO South MP Eddie Cross said the biggest shock of the 2015 National Budget was the disclosure that nearly 5 000 firms have closed down due to the current economic problems facing the country.

Presenting the National Budget yesterday, Finance and Economic Development minister Patrick Chinamasa said 4 610 firms had closed down between 2011–2014 affecting over 55 443 employees.

“The budget was more of what was expected. The fiscal restraints are so great to make any changes. The big shock was the number of companies that have closed down between 2010-2014.I think the economy is contracting and the revenue projections will not be achieved,” Cross said.

Chinamasa projected a 3,2% growth rate in 2015 while presenting the $4,1 billion National Budget. The figures were the same as those presented for the 2014 budget.

Cross said the coming in of the international community to assist in the Budget was a positive development.

He said Zimbabwe needed to address three key issues that include property rights, rule of law and indigenisation.

Cross said investors wanted to know if their investments were safe and secure in Zimbabwe.

Economist Renneth Mano said Chinamasa presented the 2015 budget under difficult conditions as the economy was badly performing.

“He (Chinamasa) did not have a lot of options,” he said.

Mano said Chinamasa did not articulate the strategy to remove Zimbabwean government leaders from the sanctions list.

Zimbabwe Congress Trade Union president George Nkiwane said the increase in the tax threshold to $300 from $250 was a welcome development.

“It’s a relief to workers and we appreciate it. We would have appreciated that the workers who are earning below the Poverty Datum Line not to be taxed. Retrenchments are one of the major things giving us headaches as employees,” Nkiwane said.

“We thought that the Finance ministry was going to have Budget consultation and we were looking forward to engage and put our view that there is need to bring more investors in the country to create employment.”

Mbizo MP Settlement Chikwinya said he was not happy with the way Chinamasa treated parliamentarians at the Budget presentation as they did not have copies of the statement and were not aware of the allocations.

“I was not happy that the Speaker of the National Assembly Jacob Mudenda allowed Chinamasa to announce a Budget statement without first availing copies to MPs so that they have a close analysis of the Budget while the minister was announcing it,” Chikwinya said.

“We cannot rely on pronouncements by the minister without having a look at the figures. Chinamasa failed to a make a graphic presentation on the provided ICT in Parliament which is Parliament which prejudiced Members of Parliament of an informed analysis of the Budget. I was also not happy that by the end of the Budget statement members of Parliament were still not aware of the allocations provided to each ministry.”

He said the blue book was not also made available after the Budget statement and would only be distributed to legislators on December 16.

“I tried to raise a point of order with Mudenda in terms of section 61 of Parliament standing rules and orders, but I was not given a chance to speak because of political allegiance and that Mudenda wanted to please President Robert Mugabe,” he said

Many independent journalists were also barred from covering the Budget presentation despite being accredited a day before.