Minister of Finance and Economic Planning and Development Dr Goodall Gondwe says the measures Government has instituted are strong enough to attain their objective of normalizing the economy within this year.He said this on Friday, at Parliament when he was presenting the 2015/16 Mid-Year Budget Review Statement.
According to the Minister, Government has also embarked on a radical fiscal adjustment that aims at ultimately covering recurrent expenditure of the budget with domestic resources leaving only the bulk of the development part of the budget to be covered by external resource to progressively eliminate Government domestic borrowing that fuels inflationary pressures.
He further added that Government has succeeded to reduce domestic borrowing from a high domestic borrowing of K78 billion at the end of the last half of the 2014/15 fiscal year to MK4.3 billion at the end of the first half of 2015/16 financial year.
Gondwe said a sustained reduction of domestic borrowing could also resuscitate private sector confidence in the economy and could be a factor in the quest for the resumption of acceptable and robust growth rates and our ability to create high employment levels.
“A sustained reduction of domestic borrowing could also resuscitate private sector confidence in the economy and could be a factor in the quest for the resumption of acceptable and robust growth rates and our ability to create high employment levels.
The Minister added that, Government has to invigorate the efforts to attain self-sufficiency by deflecting public attitudes that regard foreign aid as a permanent feature of the budget and that we must progressively increase efforts to maximize the domestic coverage of recurrent budget.
He also said they want to deal with food shortage during the coming harvest season the Government’s plans of rehabilitating irrigation schemes to enable farmers to double food production is a serious and practical solution to unfavorable.
Said Gondwe, “Government will find markets for legumes with good markets and it is also expected that the concomitant increase of foreign exchange that will result from the exportation of these crops can supplement the dwindling tobacco exports. If this were to be the case as it should be, our balance of payments position should improve and the exchange rate.”
He however argued of some political parties who have persistent doubts despite governments assurance this is expected and though the public that may differ on what should be done, that does not mean that the Government does not have plans and policies of what to do.
In his reaction to the statement, Ambassador of Britain Micheal Nevin, said the bold steps that Government has put in place is going on the right track and should do that though it may hurt.He said Government shows commitment to get the economy of the country on track which from the budget shows that its showings signs of recovery of inflation.