Former Finance Minister Tendai Biti has expressed his thoughts ahead of Mthuli Ncube’s 2020 National Budget presentation later on Thursday.
Biti observed that Zimbabwe’s economy has contracted massively and has projected 2020’s growth to be -12%. Writing on Twitter, Biti said:
There are 7 critical issues affecting the Zim economy 1) distorted monetary policy 2) deficit financing3) over-taxation 4)zero productivity 5) hyperinflation. 6) social services collapse 7) unemployment 8) corruption. Today s budget will be tested on the ability to address these.
It is clear that there is no courage nor desire to address the above key structural issues. It is not possible to have reform without reformers. It is beyond the regime to address corruption, including command Agriculture. Reform has been subordinated to vested interests and capture
Budgeting in hyperinflation reality is a waste of time. A ZWL$30 billion budget is a mere US$1.5 billion & is a massive contraction. The economy is in a deep recession with 2020 growth around -12 %. Exercises in self-deception must be abandoned. Political crises need resolution
