Maravi

(HERALD) Budget should foster economic growth

Budget should foster economic growth

EXACTLY a week from today, Finance Minister Cde Samuel Mumbengegwi will reveal what he has in store for the nation over the next 12 months and the task he faces is not an enviable one. The extent of the challenges to be overcome necessitates a cocktail of measures to address the needs of every sector, not least supply side bottle necks manifest in shortages of basic commodities.

The budget should, therefore, provide measures to arrest hyperinflation, address the balance of payment deficit, forex shortages, pricing distortions, diminished export viability, low capacity utilisation in key productive sectors among other things.

Like everybody else, we expect nothing short of a comprehensive people’s budget with practical measures to expedite the economic turnaround initiative.

The 2007/8 agricultural season has been dubbed the mother of all seasons, hence the budget should also address problems in the agriculture sector to ensure that the season is not detracted by undue shortages of key inputs.

As usual, the budget presentation coincides with the festive season, expectations are obviously high, especially among workers, that there would be considerable tax relief that would see disposable incomes firming positively.

Workers want to see prices stabilising to cushion them from the dreaded ‘‘January disease’’, the period of austerity that follows the opulence of Christmas festivities.

Industry, on the other hand, wants answers to the perennial problem of foreign currency shortages that have seriously impacted on production and employers’ capacity to give workers their dues.

Civil servants expect measures that would permanently lift them above the Poverty Datum Line. Even those who are not gainfully employed look forward to prescriptions that would see them joining the ranks of the employed at the earliest possible time.

The nation, thus, expects a range of measures that would foster economic growth, create employment, generate foreign currency and create the environment conducive to, and confidence essential for domestic and foreign investment.

We are; however, aware that it will be difficult, nigh impossible for Cde Mumbengegwi to meet everyone’s expectations, but what we expect are measures that will bring meaningful turnaround in the short to medium term.

We are confident that such an environment can be achieved by a holistic package of fiscal and monetary policies, and that can only be achieved by a people-centred budget.

What we all need to appreciate, as was highlighted by Speaker of the House of Assembly Cde John Nkomo at the pre-budget seminar, is that the budget is for everyone, and everyone, the private sector included, must buy in as the Government alone cannot meet all requirements.

Labels: BUDGET

posted by MrK @ 7:38 AM