biti tendai.jpgGovernment says the US$810 million 2010 budget deficit can only be met by harnessing internal resources given the reluctance by multilateral financial institutions and cooperating partners in assisting the country in its quest to fully recover economically.

Projections are that the Zimbabwe’s economy requires over 8 billion for resuscitation but the country is however far from attaining the much needed revenue given the slow pace at which external support has been coming.

 

South Africa, China and other few cooperating partners have expressed commitment in assisting the country to overcome economic challenges with South Africa contributing over 60% of the 35 million vote of credit in the 2009 budget.

 

The reluctance by multilateral financial institutions to support the recovery process has meant limited fiscal space.

 

Finance Minister Mr. Tendai Biti presented a, US$2.2 billion 2010 national budget which is inclusive of US$810 million vote of credit and to date the vote of credit has not been met leaving the country with no option but to consider maximising existing internal

resources to meet the budget gap.

 

The country’s mineral resources have the capacity to transform the country’s economy particularly the maximum exploitation of Chiadzwa’s diamonds.

 

Media, Information and Publicity Minister Cde Webster Shamu believes that though the financial challenges look insurmountable on the face value they can be overcome by a coordinate approach and utilisation of existing human and financial capital. 

 

Observers and economic analysts have concluded that in face of limited external support Zimbabwe can attain economic resurgence by consolidating the macro economic gains made so far and the implementation of sound and effective economic policies while utilising the country’s rich mineral resources.