Govt shifts monetary policy review date

Finance minister Patrick Chinamasa has postponed his mid-term fiscal policy review to next month, with sources saying Treasury was tying loose ends to the document.

Source: Govt shifts monetary policy review date – NewsDay Zimbabwe August 19, 2016

BY VICTORIA MTOMBA

The review, which was supposed to be presented this month, will be done on September 8, sources have said.

The review comes at a time when the economy has been sluggish, with revenue inflows dwindling as companies close down or default in tax payments.

During the second quarter of this year, the Zimbabwe Revenue Authority collected $861,83 million against a target of $892,88m.

The low revenue inflows to Treasury coffers have seen government shifting pay dates for its workers, who gobble over half of the total budget in salaries, starving allocations to critical sectors such as the social and infrastructure ones.

The 2016 National Budget was projected at $4 billion, with the economy expected to grow by between 1,5% to 2%.

Analysts, however, expect this figure to be lower due to the poor performance of the mining sector and the effects of El Nino-induced drought on the agricultural sector.

In his 2016 National Budget presentation, Chinamasa said prices were expected to further deflate in 2016, with a forecast of 1,6% by year end.

Exports were expected to reach $3,7bn in 2016 from $3,4bn in 2015, while imports are expected to decline to $6,2bn from $6,3bn in 2015.

COMMENTS

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    ntaba 6 years ago

    Playing for time to think up a new way to steal hard cash from the people – hence the postponement. If there is no solution apart from borrowing your self out of debt!!