adminpercent by year-end as the economy continues to underperform to reflect the present state of affairs.
What is not in dispute is that the economy continues to be on a recovery path with key gains in mining, manufacturing and energy sectors. In agriculture, a decline in maize output in the current season has definitely affected the projected growth of 11,6 percent.
There are some gains, however expected, in tobacco production as prices continue to firm at the tobacco auction floors.
Positive gains on the inflation front have been achieved with the figures remaining steady at 4 percent in March. Revenue collections for the first quarter missed the target by almost US$100 million at US$771,1 million and this has a bearing on various Government projects and programmes.
The drive to grow exports has been stifled by reduced demand of our export commodities and this has a net negative effect on our GDP growth.
While Minister Biti dwelt at length on the missed revenue targets, it is interesting to note that he zeroed in on the “underperformance” of the diamond revenues since the beginning of the year. Against a target of US$122,5 million, he said that only US$30,4 million had been remitted and this has been largely from the Marange diamond fields.
When he presented the 2012 Budget, Minister Biti set a US$600 million revenue target for diamonds and this will obviously be missed as well.
It would appear that the gems continue to cause controversy whenever they are mentioned and this time around Marange is now being blamed for the missed targets. There are other underlying issues that led to the missed revenue targets such as reduced global demand for our export commodities that contributed to this.
There are also sanctions against the companies mining the diamonds, which makes it difficult for them to openly trade in the precious stones and get their money.
Besides the Marange diamonds, has anybody bothered to find out about the remittances of other diamond-mining firms in Zimbabwe?
Playing a blame game, as seems the case appears to be clouding judgment over the real causes of the prevailing economic malaise that the country finds itself in at the moment.
There are other income streams that Treasury can effectively tap into and plug in the gaps that have been created as a result of the missed revenue targets. There is also the aspect of making realistic projections that are achievable in the face of fluctuating global economic conditions.
What the Government requires right now in the face of mounting fiscal budget pressures, is a proactive approach that addresses the fundamental issues that can help improve the lives of ordinary citizens.
It does not help to continue heckling over what colour of shoe one wears, but rather put an effort that we all have a shoe to put on.
There is more to gain by mobilising all the available resources and channelling them through the formal market with the ultimate objective of ensuring that the intended objective is achieved.
It is not a new phenomenon to have a budget deficit and Treasury, now more than ever has its work cut out to ensure that the economy continues on the growth path that it has been enjoying.
Online Reporter