Budget expected to anchor further economic development

ECONOMIC players and stakeholders are bullish about the upcoming 2021 national budget’s ability to grow the national economy.
Many economic analysts who were sceptical of government’s economic reform agenda have been left charmed by the progress recorded this year which is manifesting in price stability, exchange rate equilibrium and market discipline.
With Finance and Economic Development Minister Professor Mthuli Ncube expected to present the National Budget Statement next week, South Africa-based actuary Felix Kagura expects the Minister to build on these massive gains to accelerate the 5% economic growth envisaged in the National Development Strategy One.
“A lot has been achieved by the government so we expect the government to reign in expenditure and continue on the path of price stability and exchange rate alignment.”
Upcoming industrialist and exporter Leslie Marange spoke about the need for more support to the SMEs sector.
“As SME’s we are facing funding challenges and this is creating bottlenecks for us. So Treasury should prioritise finding the SMEs at a concessionary rate”
However, Economist Kipson Gundani says the Treasury Chief will need to play a tight balancing act to meet the expectations of all sectors, given the impact of Covid-19 on revenue generation.
“The government is faced with a funding challenge given that we spent the whole year in lockdown but the focus should be on continuing to reign 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 One which was launched this week by President Emmerson Mnangagwa.

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