Mkulo with economic ignorance

Catagena

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Great thinkers, The Tanzanian Minister for Finance tells us that there is no significant relationship between and spiraling inflation and the government budget deficit. This is a day-time lie. I don't agree with him whatsoever. Much as the purchasing power of a common Mwananchi is crippled by inflation, the same applies to the government which purchases goods and services for serving its people.

This reminisces me of one cabinet minister (by then, Finance and economic development Minister) who publicly said inflation is not related to the livelihoods of a common countryman. It only took a few months before he was ousted in that position and he later lost two key positions; in the party and the parliament as an instinctive punishment.

I am asking myself; where is this man getting all the guts to react so ignorantly to such a sensitive matter?

What does he think of all the Tanzanians?
Why is he taking things for granted?
Does he think he is the best Minister for Finance ever?

Guys, this is horrendous
Great thinkers, The Tanzanian Minister for Finance tells us that there is no significant relationship between and spiraling inflation and the government budget deficit. This is a day-time lie. I don't agree with him whatsoever. Much as the purchasing power of a common Mwananchi is crippled by inflation, the same applies to the government which purchases goods and services for serving its people.

This reminisces me of one cabinet minister (by then, Finance and economic development Minister) who publicly said inflation is not related to the livelihoods of a common countryman. It only took a few months before he was ousted in that position and he later lost two key positions; in the party and the parliament as an instinctive punishment.

I am asking myself; where is this man getting all the guts to react so ignorantly to such a sensitive matter?

What does he think of all the Tanzanians?
Why is he taking things for granted?
Does he think he is the best Minister for Finance ever?

Guys, this is horrendous

Source: http://www.thecitizen.co.tz/component/content/article/37-tanzania-top-news-story/18354-mkulo-zitto-lock-horns-on-inflation.html</a>
 
Actually Tanzanians are disadvantaged by having such a holocaust minister!
 
Waziri kasoma Almeda college, chuo ambacho hata mbwa anaweza ku graduate na degree ya Childhood Development kwa "lifetime experience". Unategemea nini?

Almeda University - Wikipedia, the free encyclopedia

 
I read this on the headlines and was also so surprised. Am not an economist or a financial expert for that matter, but one need not be a Prof to see this. It's plain simple... If the government planned to build a health center for 100 Mil, lets assume they considered inflation(which was 13% by then) so the prediction would be a maximum of 113 Mil, but at the moment it's getting close to 20% i.e one need 120 Mil to do the same project , a clear deficit of 7 Mil per each 100 Mil..

How can a minister say there is no problem, and the two have no relation?? He says "I am the minister who supervises the data body (National Bureau of Statistics-NBS) and the central bank, but so far, no such information has been brought to my notice. Where did he get it?"

To hell with the statistics, he should tell us how can the two not affect each other, where does the government buy cement, iron sheets,foods etc? Maybe he should tell us so we also have a piece of "the goods and services" that have not been affected by inflation.
 
Kwa wachumi wanatambua kitu kimoja kinachofahamika sio kila jambo basi linamahusiano siku zote. mfumuko wa bei ni kitu kipana sana na kuna vitu vingi vinaweza kusababisha. lakini wachumi wengi wamekubaliana kwasasa mambo makuu mawili ndio yanachangia kiasi kikubwa katika mfumuko wa bei mambo hayo ni

1. kushuka kwa thamani ya shillingi yetu kulinganisha na dola(exchange rate)

2.Kupanda kwa bei ya mafuta na vitu vingine vinavyohusiana na uzalishaji na usambazaji


kuhusu kwanini tunataka kuondoa uwizekano wa upungufu wa bajeti na mfumuko wa bei.
kunapokuwa na upungufu wa fedha katika serikali basi serikali inapunguza manunuzi yake ya vitu katika soko hivyo mahitaji ya bidhaa katika soko yanashuka(low demand) hivyo kama kupungua kwa bajeti ya serikali kungekuwa ni major factor basi kungekuwa na deflation yani kushuka kwa bei za vitu na si inflation kutokana na kupungua kwa mahitaji ya bidhaa katika soko ambayo yangenunuliwa na serikali. si hivyo tu kutokana na serikali kushindwa kuwa na fedha za kutosha imesimamisha malipo mbali mbali ya wafanyakazi wake na watu wanaoidai hivyo pia imepunguza uwezo wa matumizi wa wafanyakazi wake ambao pia wako katika soko hili hili hivyo kungekuwa pia na kushuka kwa mahitaji ya bidhaa na kungetokea deflation( negative to inflation) yaani kupungua kwa bidhaa.

Tatizo wasomi wetu wanakalili madesa na wakiambiwa kuwa kitu fulani uwa kinasababisha kufanyika kwa mfumuko wa bei basi wanakariri na sio kufanya simple test kabla ya conclusion


Kwa hili mkulo yuko sahihi kuwa upungufu katika serikali haujasababisha kupanda kwa bei na inawezekana serikali isingekuwa na mapungufu ya bajeti sasa mfumuko wa bei ungekuwa zaidi ya 25%. hivyo mfumuko wa bei haujasababishwa na deficit ya budget bali deficit ya budget imeokoa inflation isiwe kubwa zaidi ya hapo.

Nakaribisha maoini na ushauri
 
So Godwine unataka kuueleza umma huu wa JF kuwa kwa sasa deficit ya budget is a desirable thing, right?

Bali pia, swala lilikuwa inflation kusababisha deficit na sio deficit kusababisha inflation, hii ndiyo ilikuwa hoja ya msingi. I can see you are trying to politicize the matter, may be you did political economics.

No matter what caused the deficit, is it desirable for the time being or it is there because by chance?
Does it play any role in the budget deficit now?

If you were in Mkullo's shoes, what would your response be?
 
Godwine, two wrongs don't make it right. By failing to pay the public servants under the pretext of saving the economy from even higher inflation does not exonerate the government a blame of failure to stabilize the government. Why should you wait to infringe the statutory rights of your employees, hoping to plummet the inflation? That is a very silly economic excuse.
 


hatuhitaji deficit ya budget lakini lazima tutambue impact yake kwenye uchumi, pia deficit imesababishwa na vitu vingi sana likiwemo ukusanyaji dhahifu wa kodi na kupuziwa misaada na kama inflationi haikusababisha kwa kiwango kikubwa na deficit bali ni kupanda kwa bei ya mafuta na kushuka kwa thamani ya fedha yetu basi yenyewe ndio itayokuwa ikiongoza mapungufu zaidi katika bajeti yetu.

Mapungufu katika bajeti yetu hayajasababisha mfumuko wa bei bali mfumuko wa bei umepelekea mapungufu zaidi katika bajeti yetu . mapungufu ya bajeti yetu pia yanaweza kusababishwa na mambo mengi kama niliyoyataja pale juu
 

I think you're missing the point, issue anayongelea Zitto ni INFLATION CAUSING A BUDGET DEFICIT, na Mkulo anasema sio kweli. Kama una-defend stance ya Mkulo, tell us how is could that not be the case.

LET'S LEAVE POLITICS TO POLITICIANS.
 

siungi mkono wafanyakazi wa serikali kutolipwa haki zao kutokana na kazi waliyotumikia taifa lao , lakini nimeangali madhara yaliyosababishwa na kitendo hicho kwenye uchumi wetu. si hivyo tu bali ata mishahara midogo wanayolipwa inapelekea kutoweza kuwa na uwezo mkubwa katika manunuzi na kusababisha demand kuwa ndogo na vile vile kuleta madhara kwenye uchumi.

Siungi mkono watu kutolipwa haki zao lakini nameonyesha madhara yake kwenye uchumi. Na pia ni wajibu wa kila mtu kudai haki yake
 
MtamaMchungu said:
I think you're missing the point, issue anayongelea Zitto ni INFLATION CAUSING A BUDGET DEFICIT, na Mkulo anasema sio kweli. Kama una-defend stance ya Mkulo, tell us how is could that not be the case.

LET'S LEAVE POLITICS TO POLITICIANS.
Click to expand...

Tuko pamoja mkuu mambo mengi kichwani niliposoma juu juu nikadhani umeweka budget deficit kama variable inayopelekea inflation.


Tupo pamoja mkuu na zitto atakuwa sahihi kusema inflation imesababisha kukata zaidi kwa bajeti
 
I was shocked when i read this today.

Either the minister thinks we are all stupid or he himself does not understand basic economics. Either way it's another example of the wonderful leadership CCM has provided over the last 50 years. :embarassed2:
 
with this type of a human kind handling the country's economic portfolio, many of us can easily go mad!!
 
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