AS MDC we are concerned about the principle of fiscal prudence and fiscal sustainability.
It is very clear that the government has failed to live within its means
at a time when everybody in the country is reeling from economic hardships. If workers exhaust their disposable incomes at the end of the month, where do they get supplementary income?
Why should everybody tighten their belts when government is showing such extravagance? The supplementary budget is a clear signal that government has failed to operate on a budget which is critical for macro-economic stability.
Government has shown beyond reasonable doubt that it is politically-insentive to the suffering of the people because it is digging deeper into public funds.
The record of the ruling regime is marred by fiscal indiscipline to such an extent that government seizes the consolidated revenue fund as a milch cow. Because of the huge expenditure overruns, government has become excess baggage to the people. It has become a liability to the taxpayer and the most unfortunate thing is that parliament is being used as a conduit to siphon public funds, something we find morally reprehensible.
The fiscal record of this regime is a disaster. Successive ministers of Finance from the late Bernard Chidzero, Ariston Chambati to Herbert Murerwa have dismally failed to ensure that government lives within its means. It is our submission that public funds should be used with economy.
It is our further submission that the exchequer account should not be grossly abused as is the case right now.
It is also instructive to understand the knock-on effects of the expenditure
overruns on macro-economic stability. Expenditure overruns lead to a vicious cycle of higher budget deficits, higher inflation, low growth and the crowding out of the private sector.
We need fiscal prudence in order to turn this vicious cycle into a virtuous cycle of fiscal discipline, balanced budget, low inflation and sustainable economic growth.
Tapiwa Mashakada (MP),
MDC Shadow Minister of