NANGO Welcomes the Belated Announcement of the National Budget Statement, scheduled for Thursday 26 January 2009
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Laments the Undemocratic, Top-Down and Non-Inclusive Budget Formulation Process
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The National Association of Non Governmental Organisations (NANGO) - representing Non Governmental Organisations operating in Zimbabwe - welcomes the belated annunciation of the 2009 – 2010 National Budget Statement scheduled for 26 January 2009. However, NANGO remains concerned at the extent to which the budget formulation process has been undemocratic, exclusive, top-down and un-participatory. NANGO urges its membership to support the people of Zimbabwe in mounting initiatives to improve their awareness of their important role in the national budget processes, and in holding authorities accountable for their economic governance of the country.
It is NANGO’s considered view that the National Budget is the government’s most important economic policy instrument, reflective of its social and economic policy priorities. More than any other document, the National Budget statement creates opportunity for the translation of policies, political commitments, and goals into decisions on where funds should be spent, and on who and how these funds should be raised.
The 2009 – 2010 National Budget Statement comes amidst a worsening humanitarian and economic crisis that has rendered the vast majority of Zimbabweans vulnerable and in need of stronger governmental social support mechanisms to meet their survival needs.
A pro-poor, gender sensitive and child friendly National Budget is required to help Zimbabweans contend with the effects of a collapsed health delivery system evidenced by the cholera outbreak, a non operational education system, food insecurity, a sky-rocking hyperinflation, the dollarisation of basic goods and service and unemployment.
In order to effectively address the urgent social priorities for national development and the humanitarian crisis, the National Budget must be geared to provide effective stimulus to Zimbabwe’s ailing economy and depressed revenue base. Likewise the budget must clearly articulate how the government intends to raise the required foreign currency to sustain the economy in light of the increasing dollarisation, wide break-down of the Zimbabwean export market, and a factually worthless Zimbabwean Dollar.
NANGO calls upon all responsible authorities to come up with a National Budget that is in sympathy with the urgent need to adress the worsening humanitarian crisis and the ailing economy. Such a budget should ideally focus on giving short-term relief to the millions of Zimbabweans who are unable to meet their basic needs and in the medium to long-term increase the government’s revenue base by stimulating the economy to become vibrant again. Specifically the budget should address the following:
ü Arrest the cholera endemic - with over 2500 people having died of cholera; more resources need to be put towards this cause – especially in the water, hygienic and sewage sectors. We cannot allow the situation to deteriorate further. Revamping of sewerage and water reticulation system should be done urgently.
ü Educational system - with 2008 having been a wasted year, the same cannot be of 2009. Resources need to be set aside for rehabilitating the educational system, proper and incentivised remuneration of civil servants. An upheaval in the educational system can no longer be tolerated as the future of our children cannot continue to be compromised.
ü Non partisan food distribution - the budget should complement the current relief efforts that are being undertaken by the humanitarian organisations so that all people in need should have access to food and humanitarian requirements.
ü Subsidies to the agricultural sector - so that inputs are readily available to all farmers so that we revitalize the agricultural sector and become self reliant. The issue of producer prices needs to be addressed in the national budget so that productivity can be enhanced in the agricultural sector.
ü Revision of the tax threshold in order to cushion the majority of the workforce from the effects of hyperinflation and dollarisation in the country. The workers ought to be left with a liveable wage in net terms. With high taxes the majority of people are left living below the poverty datum line.
ü Re-capacitating of the industry so as to reduce the unemployment rate in the country and reduce the pressure from the social service delivery system. The measure to be put in place should encourage employment creation across the country and arrest brain drain.
For the budget to be a meaningful tool there is great need for the political parties to end their impasse and establish the much needed and legitimate, people mandated and accountable government.
In light of international isolation of the country the acting Minister of Finance should note that a weak budget system and poor budget choices exacerbate social problems hence increases the vulnerability of the poor. NANGO therefore calls upon the Minister to give priority to the socially inclined sectors so that the dignity of the people of Zimbabwe is restored.
