Finance and Economic Development Minister, Professor Mthuli Ncube Thursday afternoon presented a ZWL$ 421.6 billion 2021 National Budget expected to anchor the anticipated 7.4 percent growth rebound of the economy, 263Chat Business reports.
The growth anticipation will double that of the average projection for the Sub-Saharan region of 3.1 percent.
In 2021, Government anticipates revenue collection amounting to ZWL$ 390.8 billion from its planned ZWL$ 421.6 billion expenditure, which will culminate into a budgetary deficit of ZWL$ 30.8 billion to be entirely met through domestic borrowing.
Of the total budget, ZWL$ 131 billion will be channeled towards capital projects while recurring expenditure will amount to ZWL$ 290 billion as the government aims to meet its target of containing employment costs to within 30 percent of budget.
In real terms, the 2021 National Budget will translate to around US$ 5.2 billion, if calculated using the prevailing official exchange rate.
263Chat Business summarized major sectoral allocations.
With agriculture sector tipped to be the major driver of economic growth, the Finance Minister proposed ZWL$ 46.3 billion towards the Ministry of Lands, Agriculture and Rural Resettlement which is seeking to increase output to equivalent of US$ 8.2 billion by year 2025.
To increase the Meteorological Department capacity, a budget of ZWL$ 766 million has been set aside.
The Ministry of Industry and Commerce has been allocated ZWL$ 2.3 billion.
Youths, Women and war veterans have been allocated US$ 37.5 million each for various income generating programs which will be accessed through the National Venture Fund.
In addition, ZWL$ 2.2 billion has been set aside for the Ministry of Women’s Affairs, Community, Small and Medium Enterprises Development.
A total of ZWL$ 3.4 billion has been allocated to the Ministry of Youth, Sport, Art and Recreation.
Another key sector in the National Development Strategy is the mining sector which has seen ZWL$ 1.4 billion channeled to the line ministry for various programs including exploration.
The Tourism Ministry got an allocation ZWL$ 1.8 billion.
The Ministry of Transport got an allocation of ZWL$ 30.1 billion and ZWL$10 billion will be channeled towards the Harare-Beitbridge highway project for an additional 200 km next year.
The Finance Minister also distributed ZWL$ 10.7 billion towards on-going dam projects across the country with the biggest chunk amounting to ZWL$ 4.5 billion meant for the Gwayi/Shangani dam which is currently at 40 percent to completion.
The Ministry of Energy and Power Development will receive ZWL$ 1.6 billion.
The Ministry ICT has been allocated ZWL$ 2 billion while that of Information, Publicity and Broadcasting Services will get ZWL$ 1.5 billion.
Local authorities and councils will get ZWL$10.1 billion for the implementation of the devolution agenda.
Ministry of National Housing and Social Amenities received ZWL$ 2.8 billion.
Probably the second biggest winner from the 2021 budget after primary and secondary education, the Ministry of Health and Child Care has been allocated ZWL$ 54.7 billion with an additional US$ 494 million projected to come from development partners.
Ministries of Higher and Tertiary Education and that of Primary and Secondary Education were allocated ZWL$ 14.4 billion and 55.2 billion, respectively.
On the security cluster, Defence was allocated ZWL$ 23.8 billion with Home Affairs Ministry getting ZWL$ 23.6 billion.
ZIMSTAT has been allocated ZWL$ 3.8 billion for the smooth running of the 2021 national census.
The budget also took a deliberate stance towards expanding revenue streams with Small and Medium Enterprises who operate in segregated spaces under one premise expected to pay a flat tax US$ 30 per month.
NB: 263Chat Business will make an analysis of the 2021 Budget tomorrow!
