Sundaymail Editor
Online Reporter
Government will continue to implement measures that strengthen the fiscal stability that has been achieved so far, Finance and Economic Development Minister Professor Mthuli Ncube has said.
The prevailing macroeconomic stability, which is being threatened by speculative activities on the illegal foreign currency markets, has seen Zimbabwe bounce back from a two-year economic slowdown, with the local economy projected to grow by 7,8 percent this year, and by 5,4 percent next year.
With regard to these anticipated gains, the Finance Minister said Treasury will maintain the fiscal measures that are bringing the results.
He said this in his address to Parliament’s pre-budget seminar in Victoria Falls over the weekend.
“Fiscal consolidation will be sustained in 2022 in order to entrench the prevailing macro-economic stability,” he said.
Maintaining a strategy that has been implemented since the beginning of his tenure, the Treasury boss said borrowing in the coming year will only be for budgeted expenditures, and will be carried out through market-based operations, as well as ensuring that there will be no unnecessary expenditure.
“There will be no recourse to central bank overdraft facilities to underpin the 2022 National Budget,” he said.
Minister Ncube also said Government will continue to strengthen the Public Finance Management System in order to address risks to budget sustainability, especially the accumulation of domestic arrears and extra-budgetary expenditures.
Online Reporter