Policy reforms require robust approach
The projected pace of recovery is weak and insufficient to translate into real growth in per capita income.
The inaction and slow pace of implementing structural policy reforms will continue to weigh on economic activities and require a new robust approach for better results to be realised, Finance Minister Ipumbu Shiimi has said.
Tabling the mid-year budget review for the financial year 2020/21 in the National Assembly, Shiimi said taking into context the widespread negative impact of the Covid-19 pandemic on the economy, job and public finance, the importance of implementing priority policy reform interventions could not be overemphasised.
He said, though the economy is projected to recover in 2021 and over the next medium-term expenditure framework, the projected pace of recovery is weak and insufficient to translate into real growth in per capita income.
“The economy has shed a large number of jobs not only due to Covid-19 but also over the past four years of recessionary pressures. Timely implementation of targeted measures, private sector investment commitments and structural policy reforms are critical to improve both the pace and quality of growth going forward,” he emphasised.
Highlighting some of the robust approaches, the minister said to reignite a post-Covid-19 economic recovery and job creation there is a need to finalise and implement the Harambee Prosperity Plan, of which a large component will be the economic growth and recovery plan.
Capital projects
Also, the need to support targeted productive infrastructure investment through decongestion of the public procurement processes and implementing the N$ 4 billion African Development Bank (AfDB) funded projects for agricultural programme and the completion of large ongoing capital projects.
Further, there is a need to implement a post Covid-19 growth friendly fiscal consolidation programme aimed at reducing growth in public debt through expenditure containment and concerted reduction in the budget deficit.
He equally noted that the public sector wage bill should be reviewed and the options for early voluntary retirement for the 55-60 years age cohort assessed in combination with the vacancy freeze procedures.
“To further mobilise the domestic resources to finance the national development agenda, the strategies will be centred on non-tax resource mobilisation and administrative efficiency,” noted Shiimi. - Nampa
Tabling the mid-year budget review for the financial year 2020/21 in the National Assembly, Shiimi said taking into context the widespread negative impact of the Covid-19 pandemic on the economy, job and public finance, the importance of implementing priority policy reform interventions could not be overemphasised.
He said, though the economy is projected to recover in 2021 and over the next medium-term expenditure framework, the projected pace of recovery is weak and insufficient to translate into real growth in per capita income.
“The economy has shed a large number of jobs not only due to Covid-19 but also over the past four years of recessionary pressures. Timely implementation of targeted measures, private sector investment commitments and structural policy reforms are critical to improve both the pace and quality of growth going forward,” he emphasised.
Highlighting some of the robust approaches, the minister said to reignite a post-Covid-19 economic recovery and job creation there is a need to finalise and implement the Harambee Prosperity Plan, of which a large component will be the economic growth and recovery plan.
Capital projects
Also, the need to support targeted productive infrastructure investment through decongestion of the public procurement processes and implementing the N$ 4 billion African Development Bank (AfDB) funded projects for agricultural programme and the completion of large ongoing capital projects.
Further, there is a need to implement a post Covid-19 growth friendly fiscal consolidation programme aimed at reducing growth in public debt through expenditure containment and concerted reduction in the budget deficit.
He equally noted that the public sector wage bill should be reviewed and the options for early voluntary retirement for the 55-60 years age cohort assessed in combination with the vacancy freeze procedures.
“To further mobilise the domestic resources to finance the national development agenda, the strategies will be centred on non-tax resource mobilisation and administrative efficiency,” noted Shiimi. - Nampa
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