- Merchandise imports are also projected to increase by 11.1% to US$5 245.7 million in 2021, from US$4 719.9 million in 2020, driven by increases in fuel, machinery and raw material imports. Food imports will, however, be lower on account of reduced maize imports, following a good 2020/21 agricultural season.
- Between January and June 2021, the country received US$746.9 million in diaspora remittances compared to US$288.7 million received during the same period last year. Remittances are projected to continue to drive the current account surplus in 2021, with end year projection of US$1.3 billion.
PUBLIC FINANCES DEVELOPMENTS
- The 2021 National Budget was premised on revenue projections of ZW$390.8 billion (16.4% of GDP) and expenditures of ZWL$421.6 billion (18.2% of GDP) with a targeted budget deficit of ZWL$30.8 billion (-1.3% of GDP).
Budget Outturn: Jan-June 2021
- The first half year budget execution indicates continued dividends from the fiscal consolidation measures being pursued since the Transitional Stabilisation Programme (TSP) and these relate to the following:
- Spending within the Budget that has resulted in improved public finances;
- Managing the budget deficit, and hence, the public debt within sustainable levels;
- Supportive monetary policy target on attaining macro-economic stability and growth objectives; and
- Availing more resources towards developmental programmes and projects, including infrastructure, social service delivery and social protection.
- To that end, for the period Jan-June 2021, revenues are estimated at ZWL$198.2 billion, whilst expenditures were about ZWL$197.6 billion, resulting in an almost balanced budget position, with a small surplus of ZWL$570 million.
- In the outlook, the budget is anticipated to remain more or less on course assuming limited impact of exigencies and containment of expenditure pressures.
Revenue
- Cumulative revenue collections for the period January to June 2021 amounted to ZW$198.2 billion against a target of ZW$182.1 billion, resulting in a positive variance of ZW$16 billion or 8.8%. This positive performance was attributed to both tax and non-tax revenues, which were above targets by 5.3% and 392%, respectively.
- Total revenue collections also include net cumulative foreign currency collections of US$698.5 million (against a target of US$660 million).
- The major contributing revenue heads were VAT (23%), Corporate Income Tax (20%) and Personal Income Tax (17%).
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