Finance and Economic Development minister Mthuli Ncube has revised GDP growth projection to 4.6% this year from the initial 5.5% attributed to external global developments and Zimbabwe’s “unique” circumstances.
In his midterm fiscal policy review statement presented in Parliament Thursday, Ncube said the domestic economy has not been insulated from the global developments, particularly from rising commodity prices and inflation as well as disruptions on supply chains.
“As a result, domestic economic growth for the year 2022 has been revised downwards from the 5.5% initially projected to 4.6%, reflecting the impact of the external global environment as well as our own unique circumstances,” Ncube said.
He said growth has also been weighed down by reduced output from the 2021/22 agriculture season, while other productive sectors are still projected to register positive growth.
Ncube also tabled a ZWL$929bn supplementary budget saying this has been necessitated by fiscal developments during the first half of the year, characterised by increasing revenues and expenditure pressures.
Revenue collections are now projected at ZWL$1.7 trillion while expenditures are estimated at ZWL$1.9 trillion.
More than half of the supplementary budget will go towards employment costs of government employees, Ncube said.
- Cuts GDP growth projections to 4.6% from 5.5%
- Tax free threshold doubled to ZWL600k per annum from ZWL$300k with effect from Aug 1
- Local currency bonus tax free threshold revised to ZWL$500k from ZWL$100k
- Proposes a ZWL$929bn supplementary budget with 53% of the resources going to employment costs of government employees
- Exports projected at US$7.3bn this year driven by increased mineral receipts
- Merchandise imports to reach US$8.1bn driven by fuel and machinery imports
- Domestic debt stands at ZWL$1.3 trillion while external debt now at US$13.2bn. Zimbabwe to host a debt forum