Gono announces fiscal policy (27-09-07)

y in last month saying he was waiting for the mid-term fiscal policy by Minister of Finance Samuel Mumbengegwi and studying the effect of the price control.

Gono’s policy was not going to say anything that would ensure an economic turnaround in the short term.

Economic consultant John Robertson said there was nothing to look forward to in the monetary policy he has shown since 2003 an economic turnaround was not possible as long as major sector of the economy are depressed.

“Major sectors of the economy need to start producing and generating foreign currency is all that he plans to announce is to work.”

“Parallel market rates should be evident enough for him to admit that the task at hand needs a political solution,” said Robertson.

In the past investors, businessman and companies waiting for the policies in anticipation of an exchange rate review.

Gono has been striped of the power and now does not have power to review the exchange rate. The minister of Finance now has powers to review the exchange rate.

Among the major issues that Gono is expected to address are, interest rates, inflation, mining, fuel, power, agriculture and price distortion.

Economist Eric Bloch said he was not expecting much from the monetary policy.

“We will wait and see but events on the ground point to just another gathering of many words and less action,” he said.

Since he was appointed governor in December 2003, he has failed to achieved his inflation and money supply targets.

Gono whose popular saying when his assumed office of “Failure Not An Option” seem to be obvious that it is now an option- CAJ News.