Parly demands national supplementary budget
SENIOR STAFF WRITER
firstname.lastname@example.orgTHE parliamentary portfolio committee on Budget and Finance has demanded answers from Finance minister Mthuli Ncube on why he is failing to come up with a national supplementary budget to address effects of the current inflation ravaging the economy.
“The committee is concerned with the absence of the supplementary budget despite the glaring need for such given the fact that the country is experiencing three-digit inflation levels… Although on average utilisation has been 46 percent, there is widespread imbalance on the utilisation,” read the report.
“The minister acknowledged in his statement that inflationary pressures continued to undermine budgeted provisions — including the cost of providing public services — but no budgetary adjustments were made to cater for that. The minister also disclosed when he appeared before the committee on June 3, 2020 that additional 400 nurses and 200 medical staff recruited in March led to an increase in employment costs from $1,2 billion inFebruary to $1,7 billion in March. However, this does not add up as this translates to more than $800 000 per person.”
“Added to fuel imports that amount to at least US$80 million a month, this puts significant pressure on the available forex, the committee, therefore, calls upon the fiscal authorities to complement the monetary authorities who have put in place measures to promote productivity in the economy.These include the reduction of the bank policy rate from 70 percent in November to 35 percent, 25 percent, and further again to 15 percent in March 2020. The statutory reserve ratio on bank deposits was reduced from five percent to 4,5 percent.”