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This article participates on the following special index pages:
Marange, Chiadzwa and other diamond fields and the Kimberley Process - Index of articles
MDC approves Minister Biti's budget review
Movement
for Democratic Change (MDC)
July
19, 2012
The MDC approves the Mid Term Fiscal Policy review statement presented
on Wednesday by the Minister of Finance, Hon. Tendai Biti in Parliament.
As the MDC, we compliment
the minister's announcement that there are major changes in
the government's indigenisation policy which now exempt foreign
investors from a requirement to cede 51 percent of their interest
to locals.
The move will go a long
way in calming fears by foreign investors as Zanu PF's calls
compelling foreign owned companies to dispose 51 percent of their
stake had brought a crisis in the economy that has seen revenue
inflows declining.
Minister Biti said government
revenues had stopped growing, a sign that the economy now needed
foreign direct investment to boost production and job creation,
especially in the manufacturing and mining industries.
However, we are concerned
that Minister Biti's Wednesday review statement comes at a
time when the country's economy is at a critical stage as
revenues trickling from the Marange diamond operations are far below
expectations.
In his 2012
National Budget statement,
Minister Biti had projected a US$600 million diamond revenue inflow
from Marange fields but the Treasury only received US$146 million
in the first six months of this year.
This has resulted in Minister Biti revising this year's National
Budget target downwards from US$4 billion to US$3, 4 billion.
The non-performance of
the country's economy has also been affected by some government
entities, especially the Zimbabwe Republic Police and the Registrar-General's
Office which are sabotaging the Treasury's efforts to widen
revenue collection by withholding funds they collect on behalf of
the government.
As a Party, the MDC is
concerned that the heads of the two government departments, the
acting commissioner general Augustine Chihuri and Tobaiwa Mudede
are partisan and serving the interests of Zanu PF at the expense
of the nation.
The revenue shortfalls
due to low revenue inflows have resulted in the economic growth
forecast falling from 9, 4 percent to 5,6 percent.
The MDC calls for the
people of Zimbabwe not to allow themselves to be diverted by a small
clique of misguided and retrogressive individuals in our midst,
who thrive on chaos and perceive development, democracy, growth,
trust and stability as anathema.
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