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

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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