Biti slashes budget by $700,000 000
Finance minister Tendai Biti told parliament that Zimbabwe needs to live within its means,and slashed by $700,000 000 a budget proposed earlier.
Tendai Biti,presented a new budget to parliament Wednesday.Patrick Chinamasa, appointed acting finance minister by President Mugabe, had proposed a $1.7 billion interim budget in January. Biti called for $1 billion in spending.
Biti called his a “reality budget” and pledged to raise funds for education, health and infrastructure.
In his budget revision speech, Biti said the government was unable to increase monthly allowances paid to civil servants from the current $100 — a move that would have helped build confidence in the new leadership.
“The outlook of our economic situation is still grim, but I have no doubt that we will be able to achieve the turnaround we require,” he said.
Less revenue will mean the government will take longer to restore services, supply dilapidated hospitals with medical supplies, rebuild schools and improve the infrastructure.
Biti said Mugabe would launch a short-term economic recovery plan on Thursday, focusing on the humanitarian crisis and agriculture, manufacturing and mining.
Posted by Raymond Mhaka
on March 19, 2009. Filed under Financial News,Local News,Tondi's Blog on all things Zimbabwean.
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