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Rising prices worry State
The Herald (Zimbabwe)
December 07, 2005

http://www1.herald.co.zw/inside.aspx?sectid=280&cat=1&livedate=12/07/2005

GOVERNMENT is concerned about the fast rising prices, especially of basic commodities and essential services, which are contributing significantly to hyper-inflation, President Mugabe has said.

"Regrettably, this is also immensely contributing to the rapid erosion of the people’s standards of living," Cde Mugabe said while delivering the State of the Nation Address to Parliament in Harare yesterday.

"Government, however, continues to implement measures designed to turn around the economy so prices can stabilise in the context of a growing and expanding economy."

The President said a successful agricultural season this coming year would certainly curb the inflationary trend.

He said the main thrust of 2006 National Budget presented last week was to reduce the high inflationary pressures that were currently threatening the socio-economic well being of the people.

"In line with the economic turnaround strategy being pursued, Government is making concerted efforts to ensure more efficient use of the nation’s scarce resources," he said.

The President also said resuscitation of agriculture to ensure food security, generation of foreign currency, increased industrial productivity, infrastructure development and sustainable growth in energy supplies remained priorities of Government.

Turning to corruption, President Mugabe said considerable progress had been made in the fight against the scourge and related economic crimes that had permeated all levels of society.

He said the appointment of the Anti-Corruption Commission to spearhead the crusade against graft was a significant move.

"It is expected that its joint efforts with the Zimbabwe Republic Police and all other security agencies will significantly reduce corruption levels," he said.

Cde Mugabe said efforts by Government to provide decent accommodation to the people through the national housing programme received a major impetus following the implementation of Operation Garikai/Hlalani Kuhle.

Government committed $41 trillion under phase 1 of the programme last July.

The President said the programme was expected to continue until the national housing backlog was significantly reduced.

On relief and welfare services, Cde Mugabe said the Government would step up social protection mechanisms.

He said $100 billion was allocated to this year’s budget and an additional $150 billion as a supplementary budget to put into effect the drought relief programme.

As part of ongoing efforts to eradicate poverty, Government, through the Ministry of Women Affairs, Gender and Community Development, was implementing selected projects aimed at empowering communities to improve their livelihoods through food security and income generation, the President said.

He said despite many challenges in the health sector, the Government remained resolute in its drive to safeguard the health and quality of life of the population.

"Thus, Government remains gravely concerned about the escalating costs of health care. At the same time, the health demands have been intensified by the prevalence of the HIV and Aids pandemic, malaria and other diseases. Government continues to address this sector seriously," he said.

Cde Mugabe said for the country to maintain the high standard of education, the Government would begin to put into effect the recommendations of the Nziramasanga Commission of Inquiry into Education Report.

This would see the establishing of at least one pre-school at every primary school, implementing the two pathway structure which channels students into technical, business, commercial and academic streams.

Hot-sitting would be phased out, while permanent education infrastructure in newly resettled areas would be established through the construction of new schools and completion of outstanding structures.

MPs from the faction-ridden opposition MDC boycotted the State of the Nation address.

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