‘2021 budget should stimulate further economic development’

By Owen Mandovha

Economists are confident the 2021 budget will be an anchor of economic growth as the country focuses on National Development Strategy One.

Economic analysts, who were sceptical of government’s economic reforms, have been charmed by the progress recorded this year which is manifesting in price stability, exchange rate equilibrium and market discipline.

With the Minister of Finance and Economic Development, Professor Mthuli Ncube expected to present the National Budget Statement next week, South African based actuary, Felix Kagura expects the minister to build on these massive gains to accelerate the 5 per cent economic growth envisaged in the National Development Strategy.

“A lot has been achieved by Government so we expect the Government to reign in expenditure and continue on the path of price stability and exchange rate alignment.”

Industrialist and exporter, Leslie Marange appealed to the government for support to the SMEs sector in terms of funding to create more jobs.

“As SMEs, we are facing funding challenges and this is creating bottlenecks for us. So treasury should prioritise funding the SMEs at a concessionary rate.”

However, economist Kipson Gundani said it might be a tight balancing act for the treasury chief to meet the expectations of all sectors given the impact of COVID-19 on revenue generation.

“Government is faced with a funding challenge given that we spent the whole year in lockdown but the focus should be on continuing to rein in inflation and stabilise the exchange rate which will provide an impetus for Economic growth.”

The 2021 national budget is expected to be anchored on the five-year National Development Strategy 1 which was launched by President Emmerson Mnangagwa earlier this week.

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