Highlights of Zimbabwe Finance Minister’s mid-term Fiscal Policy Review


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P-Chinamasa (1)Zimbabwe’s Finance Minister Patrick Chinamasa today presented a mid-term fiscal policy review statement to Parliament. Below are some highlights.

  • Chinamasa proposes to cut 25 000 jobs by December 2017, saving $155 million annually
  • Finance Minister also seeks to freeze civil servants’ bonuses for the next two years, to save $180 million
  • Government to consider closing some embassies
  • GDP for 2016 forecast at 1,2 pct from the initial projection of 2.7 percent. A May Treasury report had revised the target to 1.4 percent
  • Average rate of inflation seen at -0.4 percent in 2016, against -2.4 percent in 2015
  • Revenue for 2016 seen at $3.755 billion, down from $3.85 billion
  • Budget deficit reached $623.2 million in the first half of 2016, against a full-year projection of $150 million
  • Budget deficit seen at $1 billion at current expenditure levels
  • Exports at $1.1 billion in first half of 2016 compared to $1.2 billion in first half of 2015
  • Imports at $2.5 billion in first half of 2016 against $2.9 billion in first half of 2015
  • Revenue at $1.692 billion in first half of 2016, 9.8 percent below target
  • Full-year 2016 revenue now projected at $3.755 billion, revised from $3.85 billion
  • First half 2016 expenditure, at $2.32 billion, overshot budget by $308.4 million
  • Diaspora remittances down 15 percent to $387.9 million in the first six months of 2016
  • Diamond production at 972 765 carats against target of 6 million carats
  • Tobacco production above target at 201 million kg as at September 5, 2016
  • Maize output seen at 511 000 tonnes in 2015/16 season
  • Zimbabwe has 8 months’ supply of maize
  • Government has secured an $85 million facility towards a Special Maize Production Programme targeting a 2 million tonne annual output
  • External debt at $7.5 billion, with 80 percent being arrears. Total public debt at $9.6 billion

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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