What next after elections?

Staff Writers

The new administration that will be elected next week has to embark on austerity measures to contain runaway government expenditure, economic analysts have said.

Zimbabwe goes to the polls on Monday with Robert Mugabe out of the picture after he resigned last year.

Analysts say work is cut out for the next government which has to proffer solutions to the widening fiscal deficit, foreign currency and cash shortages.

Economic analyst Richard Mawarire told the Business Times that whichever political party comes out victorious post the July 30 elections, there is need to urgently address the issue of unsustainable fiscal deficit fuelled by government indiscipline.

“There is need to implement a massive austerity programme inorder to curtail the currently unsustainable fiscal deficit and channel resources towards capital expenditure programmes.

“There is also need to promote export oriented production with a view on value addition for platinum, gold and other platinum group metals,” said Mawarire.

He said addressing that would create enough ground for the economy to counter current pressures around cash and availability of nostro funding as the country works towards stabilisation and reintroduction of a stable currency in the medium to long-term.

Economic analyst Daniel Ndlela said the economy would not get back on track if fiscal indiscipline was not contained.

Government’s spending of late has skyrocketed to 94 percent following the hiking of civil servants salaries.

“The most important thing that Government needs to do post elections is to reverse the current fiscal deficit. Right now the current deficit will not allow the country to move forward considering that about 94 percent of the Government revenues at the moment are going towards cost of labour.

“There is crowding out of revenue meant for the private due to the current fiscal deficit. We should not talk of any economic revival when we have not addressed the current fiscal deficit and we also need to instill massive fiscal discipline,” Ndlela said.

Economic analyst, Gift Mugano noted that government should focus on a new economic blueprint post -election as the Zimbabwe Agenda for Sustainable Socio-Economic Transformation comes to an end this year.

“Whoever wins the elections should come up with a national development policy which identifies strategic economic sectors with quick scores in a bid to achieve the middle income economy by 2030.

“Government of the day should come up with inclusive growth strategy which will see everyone benefitting from the middle income economy. We don’t want a middle income economy where the economy is in the hands of the few. We need job creation for all people and participation of all marginal population like the women, rural population, disabled and the youths,” Mugano said.

Economist Persistence Gwanyanya said there is need to focus on implementing serious socio-economic reforms which will curtail the economy forward.

“We need the new government to address high poverty levels and high unemployment rate in order to achieve serious economic growth. Fiscal reforms and good corporate governance issues should be done to improve the economy. We need permanent solutions to our economic challenges rather than short term solutions,” he said.

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