Finance and Economic Development Minister, Mthuli Ncube, said that the government has been able to fulfil the first rule of economics, balancing the budget.
Writing for The Herald, Minister Ncube said that austerity is a short-term measure to restore the economy and the long term effect will be more money and more jobs. He said:
The most important thing is that the train of sensible economics is firmly back on the tracks. We no longer spend more than we earn; the first rule of any economic entity, be it a person or a country. Balancing the budget is imperative.
This is perhaps our greatest achievement to date. It is neither painless nor smooth, but reforming and rebuilding never are.
The last six months have seen us launch deep and broad policy reforms under the banner of our Transitional Stabilisation Programme (October 2018-December 2020).
The Transitional Stabilisation Programme (TSP), essentially, targets a number of areas for reform, that are key to providing a foundation for strong, shared and sustainable growth and development.
… The short-term effect is, unfortunately, an austerity felt by all. The long-term effect, with a mixture of discipline and patience, will be more money in your pockets, more jobs, and an economy back on its feet.
While politicians live from day to day, economics is a long-term game; one must look at the bigger picture.