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2022 Mid-term Budget Review A 'Dog's Breakfast' - Biti

2022 Mid-term Budget Review A 'Dog's Breakfast' - Biti

Former Finance Minister Tendai Biti says Treasury boss Mthuli Ncube’s 2022 mid-term review and budget statement failed to address fundamental challenges bedevilling the economy.

Posting on Twitter, Biti, who is CCC deputy president and Member of Parliament for Harare East, said that the fact that broad money grew by 245% by May 2022 shows that the government is failing to live within its means and is resorting to money printing. Biti wrote:

The Minister of Finance has presented his 2022 mid-term review & budget statement. It was painful to indulge in an hour of a pointless, tired monologue. An absolute damp squib.

A huge opportunity was missed to address fundamental disequilibrium in the economy centred around 7 key issues that are 1) hyperinflation 2) exchange rate collapse 3) collapse in public sector wages 4) collapse of the social sector 5) low output 6) deficit financing & the national debt 7) tax reform.

Sadly the government missed a glorious opportunity of addressing key issues. Failing to address the key challenges of the day was a cowardly criminal omission that in any event has been the hallmark of Mthuli’s tenure.

To compound matters, Mthuli then proceeded to make shocking announcements on a supplementary budget & some tax increases.

The 2022 Budget was a ZWL$850 billion budget, but a ZWL$1.9 trillion budget is now being proposed.

Effectively Mthuli is proposing a brand new 2022 budget of 120% more than the original budget. This is sheer insanity driven by money creation & an overzealous fiscal policy.

They are failing to live within their means & are now resorting to money printing. A fact confirmed by Mthuli’s admission that broad money grew by 245% by May 2022.

That domestic debt is now ZWL$1.3 trillion is further proof of the existence of a profligate irresponsible regime.

Collapsed public sector wages needed to be dealt with decisively & anything short of a US$ wage won’t work.

The proposed increase of the tax-free threshold to ZWL$600 000 when the exchange rate is now above 1:1000 is an insult.

Perhaps most shocking are Mthuli’s tax measures which he was too embarrassed to read out. The cruellest is the increase to 30% of withholding tax on cross-border traders without a tax clearance certificate.

This will hurt 60% of the population in the informal economy. The reduction of the Value Added Tax threshold from US$60000 to US$40000 will also hit hard the informal sector.

Big business is not spared. Corporates are now required to prepare two sets of accounts, one for US$ and another for ZWL$ transactions. This is a costly exercise confirming that we have become a Banana Republic.

In short, this Review was a complete disaster. It betrayed the absence of a theoretical philosophical framework of its authors. It entrenched looting and arbitrage whilst unleashing cruel revenue measures. What a dog’s breakfast!

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17 Comments

dispenser 2 months ago

we don't stop commenting on a failed gvt .now e professor of junk is talking of trillions as fiscal budget . Printing rtgs wantonly to increase chances of buying e so called gold coins


chabvapasi 2 months ago

criticizing Mthuli is just criticizm of zim education system. Zimbabweans know everything that's our lawyers know better than economists that's nonsense

Tintin 2 months ago

@robert ruine you can be better.thats all I will say.you can be better.


dark continent 2 months ago

Robert Ruine is subtly fighting the likes of Machiavelli from enlightening us.He is discouraging people from reading the comment section.


Kule Dhambi 2 months ago

Pfeee muma "tiriyoni" egore riya


Greyhora 2 months ago

Im nor an expert in economics but Mthuli if he is indeed a technocrat asingaiti zvepolitics akaappointwa nenhau yeruzivo he should just resign.Usatipa zvimapresentation zvisina kana plab kunesu mbonbeea. You have failed.Even if you write a book handiverengi. Your policies anoda kuMars not o Earh


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mbombela 2 months ago

very soon mazambara trillion People making History


Quintilion 2 months ago

Pakaipa


Bearers cheque 2 months ago

Ndodzoka here?? 🙄🙄🙄🙄🙄


Pk 2 months ago

but Biti ane dambudziko reku opposer zvinhu zvose. he can't pick positives from any presentation.


citizen 2 months ago

The role of the opposition political figures is not to praise the government. The present budget announcement is a dog's breakfast served by a garden boy. It is called policy brief analysis to give the ordinary citizen a higher chance to understand and claim his or dignity.

Economist 2 months ago

Pane positive ipi apo, can u advice accordingly. Usangogwautawo newe. If thez nothing to write home about hapangorina. Period

Gafa 2 months ago

@Pk if any positive no need for attention becoz doent require corrections.AImost the whole bunch of presentation is a nullity.Ccomplete failure


Oskid 2 months ago

This guy has been experimenting with people lives he must b arrested this is genocide even ED is equally gilt in this grave murder case


Handizi John Chibadura 2 months ago

Mthuli got a chance to prove himself but at the end of the day he's racked in more failures than wins.

Current tax situation is making the playing field uneven at economic and household levels.

Continuous printing of money trying to cover up their ballooning spending habits always impregnates inflation and now its a raging wildfie

Rarely does he make popular decisions and automatically there's market resistance to his policies.

Ed should look into the perfomances of some ministries and evaluate them. Most if not all them are underperforming. Why not remove the individuals naiyewo achiteera.

We can only count down till 2023



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