Former Finance Minister, advocate Tendai Biti, has dismissed surplus reports by the current Finance Minister, Professor Mthuli Ncube, as misrepresentation of facts.
The MDC vice president noted that the Finance Minister, Professor Mthuli Ncube, has been reporting that the country registered a surplus as a result of austerity measures yet in the budget, he admitted that there was a deficit amounting to $4 billion.
The much-hyped myth about the budget surplus is a misnomer because you cannot boast of a surplus using cash accounting, and when ministries are struggling in debt with no drugs and textbooks. We cannot talk of a surplus when there is a deficit of $4 billion, which is 10% of the total budget.
Biti’ remarks come at a time when the country is having a huge deficit in food, fuel, electricity, medicines and several other basic commodities.
It is ironic to say that the economy registered a surplus when the country owes lots of money to local and foreign creditors including South Africa power utility, ESKOM and Mozambique power utility, Hydro Cahorra Bassa.
More: News Day
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