Online Reporter
What does a mid-term review entail?
It is a review of the performance of the economy in the first half of the year
Outlines fiscal projections and economic outlook for the remainder of the year
The review is a drill-down of how budget allocations have been utilised in the first six months of the year
It sheds insights on key economic indicators such as revenue collection, expenditure and deficit levels
In addition to the budget performance in the last six months, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube is also expected to:
Provide progress on tax reforms targeting the informal sector including efforts to compel informal businesses to register for Corporate and Income Tax
Elaborate on this week’s approval by Cabinet to review business levies, licences, fees and permits across the 12 sectors of the economy to ease the cost of doing business in Zimbabwe
Market Expectations:
The market is anticipating Minister Ncube to address appeals from individuals and business leader for a review of the personal income tax free-threshold
Economic analysts expect the midterm budget review to give provide a foundation for the 2026 National Budget Strategy Paper, outlining the Government’s fiscal priorities for the medium term
The market is also expecting Government to provide direction on clearing the country’s debt
The budget review must also be futuristic as Zimbabwe transitions from National Development Strategy 1 (NDS1) to the next phase of NDS2.
Fiscal mindset shift in view of the SMEs sector’s dominance in the economy
Online Reporter