The fiscal and monetary measures that have been put in place in the last two months are starting to bear fruit with the country posting a $29 million budget surplus for the month of October

This was revealed by the Minister of Finance and Economic Development, Professor Mthuli Ncube while making submissions on the 2019 budget in Harare today.

He said the economy has started to respond positively to the economic doses of increasing revenue streams while suppressing expenditure.

“The progressive 2 percent transaction tax has managed to attain positive fiscal balance for the month of October and November and secondly, the measures taken have also managed to eliminate the growth of money supply in the banks which has got negative inflationary pressures to goods and services,” said Professor Ncube.

One of the pertinent issues which was expected to be tackled by the fiscal policy is clarity on currency reforms which when quizzed the Minister said they are aware of the issue but they are putting requisite macro-economic fundamentals in place before they can decide on which currency to adopt.

“Many considerations will be taken, such as cost implications, volatility and the monetary sovereign of the economy, among other things,” he added.

Among key issues to be pursued by the government is international arrears clearance strategy meant to boost the country’s credit worthiness that will enhance the prospects of becoming an upper middle income society by year 2030.