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The national budget
Media Monitoring Project Zimbabwe (MMPZ)
Extracted from Weekly Media Update 2005-46
Monday November 28^th – Sunday December 4^th 2005

THE official media’s blind praise for every government policy as the panacea to Zimbabwe’s haemorrhaging economy was illustrated by their passive coverage of the $123, 9 trillion 2006 budget proposal.

Instead of critically examining the proposed budget, almost all the 68 stories the government media carried on the subject (ZBH [45] and official Press [23]) simplistically used the widening of tax bands to exalt the budget, which they projected as a reflection of government’s commitment to easing the burden of the workers and resuscitating the economy.

Before Finance Minister Herbert Murerwa presented his statement, the government media carried 13 stories imploring him to draw up measures to halt the country’s continued economic meltdown and increase workers’ incomes. The Chronicle (1/12), for example, urged Murerwa to heed the workers’ calls for lower taxes with a "people-oriented budget" that would improve "people’s lives and businesses". The Herald of the same day echoed these views.

And when the budget was announced, ZBH (1/12, evening bulletins) hailed Murerwa for increasing non-taxable income saying the development showed that government had considered "the plight of workers and the general populace" as "employees" would now use the money "to acquire assets as well as prepare for the festive season" (ZTV, 1 & 2/12, 8pm) and Spot FM (2/12, 1pm).

To give the budget the approval of the business community, ZTV (1/12, 8pm) reported Zimbabwe National Chamber of Commerce president Luxon Zembe and analyst Nyasha Chasakara as having described the budget as a "positive instrument" that is "critical in addressing fundamental issues and promoting economic growth".

Legislators, newly elected Senators and selected individuals were also reported endorsing Murerwa’s proposals.

No attempt was made to conduct a comparative analysis with the previous budget. Neither did ZBH discuss how the authorities would finance the budget considering the reduction in taxes, one of government’s main sources of revenue.

Nor did the broadcaster examine the economic consequences of abolishing price controls or relate the measures to the IMF’s recommendations to address continuing economic decline. This lack of analysis was also apparent in the government Press.

The Herald (2/12), for example, also rejoiced over the increase in tax-free thresholds, superficially interpreting the development to mean "more money to the people" and an "early Christmas present" for "Zimbabweans".

Without reconciling the new tax bands with the high cost of living, it claimed that Murerwa’s "cocktail of measures" would "certainly bring smiles to many" people who had "already resigned to fate oblivious of what was in store for them". Notably, the same paper revealed that the monthly expenditure for a family of six went up from $11, 6 million in October to $12,9 million in November.

There was no analysis on the likely effects on prices of Murerwa’s proposal that fuel prices be pegged at the going foreign currency inter-market rate. Neither did the paper view the reduction of value added tax, introduced in August, to the previous 15%, as a policy reversal that reflected inherent confusion in the authorities’ economic policies.

Rather, the paper welcomed the move saying, "though marginal" it would result in a "decline in prices".

The government media’s reluctance to expose confusion and contradictions in government’s policy formulations was reflected by their suffocation of Murerwa’s condemnation of the new spate of farm invasions. A cursory reference only appeared in the context of comments made by the Confederation of Zimbabwe Industries president Pattison Sithole in The Herald (2/12).

Also, Murerwa’s forecasts of an economic growth of between 2% and 3,5%, an agricultural boom of 14,8%, and an inflation rate of 80% by December next year were allowed to pass without scrutiny.

Instead, The Herald’s comment claimed the minister had "outlined a budget that should go a long way to end the economic decline and slowing inflation".

Subsequently, the Chronicle (3/12), The Sunday News (4/12) and The Sunday Mail (4/12) all carried stories exalting Murerwa, saying his budget showed that government was attentive to the people’s needs and reflected its resolve to arrest the country’s economic decline.

It was against this blind endorsement that The Herald (2/12) gave the impression that economists had unquestioningly "hailed" the budget when most of those quoted qualified their praise.

For example, while the Institute of Accountants of Zimbabwe (ICAZ) welcomed the widening of tax bands, it noted that some of the "projections might be over-optimistic" as they did not "readily reconcile with private sector perspectives and awareness of prevailing circumstances".

Apart from using the budget to present government as taking measures to arrest economic decline, ZBH also carried 20 stories that sought to portray Zimbabwe’s hosting of the just-ended African Import and Export Bank summit as a sign of regional confidence in Zimbabwe.

The event was also covered live by ZTV and repeated after the station’s 8pm bulletins.

The sourcing pattern of the government media is shown in Figs 1 and 2.

Fig 1 Voice distribution in the government Press

Fig 2 Voice distribution on ZBH

Although these media quoted alternative commentators, their celebratory editorialising drowned their views. Otherwise, almost all the voices accessed hailed the budget.

In contrast, the private media’s 22 stories were inquisitive and balanced Murerwa’s perspective of the country’s economic outlook with independent analysis. These media noted that contrary to the minister’s positive projections of economic growth, the reality pointed to further decline.

The Zimbabwe Independent (2/12), for example, quoted ICAZ dismissing Murerwa’s forecasts saying his projected growth in the agricultural sector was based on an expected "increase in production of maize by 33 percent and cotton by 26 percent" but ignored "forecast losses of tobacco production by 30 percent and little likelihood of growth in the dairy, beef, sugar, citrus, tea, coffee and other agricultural sectors."

His projected "upturn in tourism", added ICAZ, was "unlikely to materialise, unless Zimbabwe demonstrates unmitigated enforcement of law and order".

Economist Tony Hawkins agreed, saying it was a "highly technical budget" that won’t make "an awful lot of a difference to Zimbabweans" as it "fiddled around the edges of the central problem, not really tackling any of the critical issues".

The Sunday Mirror (4/12) also reported analysts as having noted that although the budget "succeeded in easing consumer’s woes" it "showed no real direction towards an economic turnaround".

SW Radio Africa (1/12) and The Standard (4/12) quoted independent commentators raising similar views.

While the government media smothered Murerwa’s criticism of farm invasions the Independent, duly highlighted the issue. The paper noted that while Murerwa condemned land invasions as detrimental to the country’s economic recovery, "Zanu PF thugs and armed militants have continued with land grab, violently kicking out white farmers in a number of provinces".

The Standard revealed that even some senior government officials were also engaged in land occupations, including Midlands governor Cephas Msipa.

Although the private papers carried more official voices, most of which were Murerwa’s statements, their reports remained critical. See Fig 3.

Fig 3 Voice distribution in the private Press

In addition, they carried four editorial comments that critically examined the budget.

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