National Budget set for 26th this month

Business Reporter
FINANCE and Economic Development Minister Patrick Chinamasa will present the 2016 National Budget on the 26th of this month. Minister Chinamasa has his work well cut out for him, as he will need to pronounce measures to ensure the economy grows at a faster rate next year, especially initiatives to rejuvenate the manufacturing industry.

The revised economic growth forecast for the current year from 3,2 percent to 1,5 percent is due to the effect of drought on agriculture last season.

The minister is also expected to pronounce strategies to grow revenue inflows to finance public programmes in light of falling tax revenues.

This forced the minister to revise projected revenue inflows from $4,1 billion to $3,6 billion, as liquidity crisis keeps firm grip on the economy.

Pronouncements in the next fiscal policy will also need to address the abnormal expenditure distribution to free up resources from funding of predominantly recurrent public programmes to capital projects.