Biti: No money, no supplementary budget

Finance Minister Tendai Biti on Wednesday presented his 2010 Mid-Term Fiscal Policy Review Statement, in which he announced that he will not propose a supplementary budget and that Zimbabwe’s economic future now hinges on the sale of diamonds from the Marange fields.

Biti announced that the 2010 National Budget anticipated revenues of $1,4 billion, but had fallen far short of that figure. The taxation of the mining sector will be an important issue in the future with Biti stating a new Diamond Act is required. In that sense Biti’s remarks that US$ 30 million of diamond sales can not be accounted for, shows there is a lot that needs to be accomplished in terms of transparency and accountability.

Meanwhile Mugabe’s regime turned out to be sensitive for German diplomatic pressure to cut off aid if the occupation of three farms owned by a German citizen continued. The best news of the week is that influential diamond researcher Farai Maguwu has finally been granted bail after almost forty days in prison.