The Sunday News
REDUCING government spending can have several benefits. Firstly, it can help reduce annual government borrowing and total public sector debt, which can prevent the bond markets from downgrading government debt. Secondly, it can help reduce inflation by reducing aggregate demand and preventing the economy from overheating. Thirdly, it can help reduce the crowding-out effect, which occurs when government borrowing competes with private sector borrowing, leading to higher interest rates and reduced private investment. Fourthly, it can help improve the efficiency of the economy by reducing the size of the public sector and promoting private sector growth. Finally, it can help improve the long-term sustainability of the economy by reducing the burden of future tax liabilities on future generations,” says an online blogger on economic issues.
The Second Republic led by President Mnangagwa has insisted on curbing Government expenditure and ensuring that its spending is kept in check and does not burden taxpayers by taking a big chunk of money from what would go towards helping the population and growing the economy. President Mnangagwa has insisted on people-centred policies, and the announcement last week that foreign travel for top government officials has been curtailed is one other master stroke move.
President Mnangagwa said he has restricted unnecessary foreign travel by both Cabinet Ministers and their Permanent Secretaries saying only trips that contribute to Zimbabwe’s national priorities and ultimate vision of an upper middle-income economy by 2030 will be sanctioned.
In addition, the President declared that going forward, no Minister and Permanent Secretary will be permitted to be out of the country at the same time as this would curtail their relevant Ministry’s service delivery and general Government business. Furthermore, President Mnangagwa tasked Ministers to expedite the implementation of ongoing as well as new policies, projects and programmes for the benefit of the people. He said the Second Republic would continue initiating people-oriented policies, programmes, and projects for the sole purpose of improving Zimbabweans’ livelihoods.
“All members remain guided by the relevant circular on foreign travel. In this regard, no Minister and Permanent Secretary can both be out of the country at the same time, as this has negative implications on service delivery and general Government business. Further, travel outside the country will be strictly limited to those programmes which are of strategic importance and contribute to our country’s national priorities. As the Executive arm of Government, our policies, programmes and projects should remain people-centred for an improved quality of life for all our people. Production and productivity across all sectors must be accelerated. All projects and programmes embarked on during the First Term of the Second Republic should be completed speedily. This calls for hard work and focus from all of you,” he said.
We applaud the move by the President, and we implore all arms of Government to play ball and ensure the success of the country’s Vision 2030.