The 2019 national budget presentation has adopted stringent measures to contain the twin rascals of fiscal deficit and current account that have always plagued the local economy.
Legislators have welcomed the budget as making progressive strides to reposition the country’s economic performance.
Prior to his maiden budget presentation, Finance and Economic Development Minister Professor Mthuli Ncube was seized with a lot of expectations that sought urgent address ranging from improving the currency crisis, debt clearance, state enterprise reforms, and cutting government expenditures, which remained a millstone around the neck of the economy.
The outlined measures to curb the unsustainably high fiscal and current account deficits have presented a good measure of hope for Treasury to contain the pressures that have spooked the market, dampening the mood and creating uncertainty, aptly described by legislators as progressive.
The Treasury boss has announced a 5 percent salary cut for senior government staff as it assumes bold stance to contain the pressure on the national budget which had a target of single digit target for this year.
Further, the ministry has stated a massive cap on Treasury bills and overdraft facilities at the Central Bank which again are viewed as important strides to improving market confidence.