Ministry of Finance and Economic Development has committed to reducing government borrowing from the central bank saying the 2018 National Budget will strengthen fiscal discipline..
Speaking at the pre–budget Seminar in Victoria Falls last week, Minster of Finance and Economic Development, Ignatius Chombo said they are forecasting revenue of US$4.0 billion in 2018 with taxes contributing US$3.763 billion.
“2018, Revenues are projected at US$4.0 billion, comprising of the following Tax revenue US$3.763 billion; and Non-tax revenue, US$237 million.
“The above Revenues will be complemented by inflows under Retention Funds, projected to raise US$293 million.
“As part of strengthening accountability and transparency over public resources, Treasury from the 2018 Budget, will require that all Revenue Retention Funds are appropriated by Parliament, and accounted for through the Public Financial Management System (PFMS) and integrated into the Budget documentation,”said Chombo.
He added that the national budget will seeks to create a conducive domestic investment environment, targeting both local and foreign investors.
“In line with the investment thrust, the budget also seeks to create a conducive domestic investment environment, targeting both local and foreign investors.
“The respective line Ministry is making the necessary review to align the Indigenisation and Empowerment Act with the clarifications by His Excellency, the President.
“Other interventions geared at improving the business environment and efficiency, such as the ‘Ease and Cost of Doing Business Reforms’, will be pursued as integral supportive measures to this Budget.
“Pursuing the re-engagement process with international financial institutions, in particular the World Bank and the African Development Bank with a view of clearing arrears, should also unlock external new financing much needed for complementing our own internally generated resources.
“Government will also remain engaged with cooperating partners who complement Government developmental Zim Asset initiatives,” he said.
Meanwhile Chombo said cumulative revenue collections for 2017 are estimated to reach US$3.9 billion, against a target of US$3.7 billion. which represents an 11.4% increase, from previous year’s collections of US$3.502 billion.