Zimbabwe 2012 Budget : What Do The Numbers Tell
In announcing the state budget, finance Tendai Biti told Parliament that he had initially drafted a US$3.4 billion budget but he later increased the budget’s scope to US$4 billion.
What this means without sounding too technical is- the bigger the budget the better, unless the country is directing the money to less worthy endeavours like funding a war for instance.
Think of it in baking terms, the bigger the baking pan, the more the dough, the more dough the bigger the cake, the bigger the cake the bigger the slice everyone should get. Please note we said should because there are no guarantees that everyone actually gets a bigger piece of cake.
Biti explained that this upward review was made following a recent Kimberley Process agreement on the sale of Marange diamonds into Western markets. This is expected to bring cash injections of US$600 million.
What exactly does a US$4 billion budget mean? Currently it means a lot considering where we are coming from. With an economy which only a few years ago was threatening to grind to a halt it’s looking positive for Zimbabwe. We can get to pay civil servants, build roads, fix our hospitals and do all those things that are good.
So regardless of the of the mismanagement and misappropriation that may happen at state and local government level, its safe to assume that the country is generally going to be in a better place in 2012 than it was in 2011.Unless something really random happens politically or otherwise. The 2011 budget was USA $ 2.7 billion so we are moving forward it seems.
Just to give perspective to what exactly US$4 billion is, let’s make a comparison. Lets take Aliko Dangote of Nigeria, who Forbes claims has an estimated worth of US$10.1 billion, if he converted all his asserts into cash he would be able to fund the Zimbabwean budget for about two years and have change about… US$2 billion of it.
Its kind of unsettling to know that our entire national budgets could fit into the pocket of one man.What does this tell us? We still a have lot of wealth building to do as a nation.