IMF praises Zim budget, irks govt critics

**IMF rep for Zimbabwe, Carlos Caceres**

Nyashadzashe Ndoro

Contrary to local analysts who have been on a spree to castigate Zimbabwe’s 2024 budget, the International Monetary Fund has praised it as an “important” and “bold” step.

The ZWL$60 trillion budget in November announced by Finance Minister Mthuli faced backlash from critics who argued the treasury had imposed harsh taxes on the ordinary citizens.

Some went on to slam the budget as “anti-people” and “anti-investment”. But Ncube remained adamant and presented it in Parliament last week for debate. Few adjustments were made on the document including lowering tollgate fees.

IMF country representative, Carlos Caceres on Tuesday hailed the government for taking the “bold” in coming up with the budget.

“The budget presents a wide range of comprehensive measures, particularly in terms of tax policy measures and revenue raising administration measures. This is something that my colleagues, particularly the technical colleagues from the fiscal affairs department of the IMF, are analysing and we are going to have a comprehensive answer when the Article 14 is here early next year,” he said.

“Overally that is a very important step, that is a bold step. I would even say a positive step but a very comprehensive and detailed plan to ensure that all the liabilities of the central bank are included in the books of the central Government.”

Caceres, however, warned the Reserve Bank of Zimbabwe against excessive money printing.

“One of the main culprits behind the macro-economic stability that we have been living in Zimbabwe is really the excessive money printing by the central bank to service some of these quasi-fiscal operations,” he said.

Economist, Gift Mugano said the “budget is anti-people and anti-industry and it’s not a normal budget”. He urged Parliament to reject it in total.

“Parliament must reject the anti-people and anti-industry budget which was presented. The proposed tax hikes and the move to exclude the informal traders from the mainstream economy will bring more pain to the already impoverished people,” Mugano said.