Thread by @ZimTreasury

We would like to welcome Zimbabwe, our neighbouring countries and the world to the 2021 National Budget which will be presented by Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"In 2018, Zimbabweans made a strong commitment to rebuild the economy, with a Vision of becoming attaining an 'Empowered and Prosperous Upper Middle-Income Society by 2030.'" #Budget2021 #NDS1 #Vision2030

"The Transitional Stabilisation Programme provided for creating the necessary macro-fiscal environment for stabilisation and investment mobilisation to facilitate growth. The path to this goal had a number of hurdles & risks but Zimbabweans remained resolute & got the benefits."

"In a short period of two years implementing the TSP, through hard work, basics were fixed, that way, paving way for durable stability and faster economic growth." #2021Budget #NDS1 #Vision2030

"The TSP reform progress was just the first phase of a long journey. As the curtain closes on the TSP, Government launched the second “leg” of the reform and development agenda – The National Development Strategy 1 (NDS1), running from 2021 to 2025." #2021Budget #NDS1 #Vision2030

"Implementation of the National Development Strategy 1 starts with the 2021 National Budget, under the theme: 'Building Resilience and Sustainable Economic Recovery'" #2021Budget #NDS1 #Vision2030

"Let's look at the global situation," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"And in Sub-Saharan Africa" #2021Budget #NDS1 #Vision2030

"The prioritisation process for the various programmes, projects and other interventions for the above pillars under the 2021 National Budget is guided by the Programme Based Budgeting (PBB) System, which emphasises on results and has been adopted for all MDAs." #2021Budget

"The PBB fully integrates national planning and budgeting in line with IRBM principles promotes high performance, quality service delivery, measurement, goal clarity, continuous improvement and accountability across the public sector." #2021Budget #NDS1 #Vision2030

"In general, the global economic downturn of 2020 has largely led to a decrease in commodity prices," states @MthuliNcube #2021Budget #NDS1 #Vision2030

@MthuliNcube "Global inflation projections for 2020 and 2021 have been revised downwards, mainly on account of depressed demand and lower commodity prices, oil in particular." #2021Budget #NDS1 #Vision2030

"Whilst the mainstay sector of agriculture was less affected by the impact of the COVID-19 pandemic, the drought had already caused some damage to the sector’s summer season." #2021Budget #NDS1 #Vision2030

"The key objective was, therefore, to save lives and livelihoods, strengthening resilience of communities, and give lifeline to the economy to pull through the waves and get the reforms back on track." #Budget2021 #NDS1 #Vision2030

"Government’s initial response to the COVID-19 pandemic was first targeted at saving human lives through reprioritising budget allocations, supported by private sector and development partners goodwill." #2021Budget #NDS1 #Vision2030

"This was followed by extended support to the rest of the economy through a Stimulus Package of ZWL$18.2 billion. ZWL$6 billion supported food security-related programmes. ZWL$4 billion was directed towards the Pfumvudza/Intwasa Programme." #2021Budget #NDS1 #Vision2030

"Government through @ReserveBankZIM availed ZWL$3 billion (initially ZWL$2.5 billion which was increased to ZWL$3 billion) through the Medium-Term Bank Accommodation Facility. To date, about ZWL$2.6 billion has been accessed by industry."
#2021Budget #NDS1 #Vision2030

"At current monthly allowances of ZWL$300 per household, Treasury has disbursed ZWL$98 million through the Ministry of Public Service, Labour & Social Welfare towards vulnerable households." #2021Budget #NDS1 #Vision2030

"As we close the year, the pandemic has not ended & continues to pose a number of risks especially to delivery of public services. Hence, a cautious approach to managing the pandemic will be essential, during the last quarter of the year & from 2021" #2021Budget #NDS1 #Vision2030

"In terms of the economy, a GDP contraction of -4.1% is anticipated by year end, taking into account latest information indicating improving capacity utilisation than earlier anticipated and this particularly relates to the manufacturing sector." #2021Budget #NDS1 #Vision2030

"Going forward, Government’s response is now transitioning to ensure the economy recovers strongly, taking advantage of the milestones from the TSP, and targeting additional support measures to cushion vulnerable households." #2021Budget #NDS1 #Vision2030

"Economic growth is expected to rebound in 2021 from the consecutive two-year slump to record 7.4%. From supply side, this growth will be driven by strong recovery in agriculture, mining, electricity, construction, transport and communication as well as finance and insurance."

"In line with economic rebound projected in 2021, formal employment is projected to grow with about 150 000 formal jobs are expected to be recovered after having been lost due to COVID-19 pandemic," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Relative stability in the foreign exchange market, following adoption of the auction system and measures taken by Government to deal with indiscipline among economic agents; particularly the mobile money firms, have restored sanity and integrity in the financial service sector."

"As a result, there has been significant slow-down in inflation as from August 2020. Year-on-year inflation in local currency for the month of October declined to 471% from 659% in September 2020, while month-on-month stood at 4.4%." #2021Budget #NDS1 #Vision2030

"Blended year-on-year inflation, which measures the combined price changes of goods and services in both the ZWL$ and US$ declined to 249% from 376% during the same period, while blended month-on-month inflation stood at 1.4% by October 2020." #2021Budget #NDS1 #Vision2030

"Further consolidation of stabilisation measures in the last quarter of 2020 will see month-on-month inflation closing the year at around 2% and the respective annual inflation at around 336%," states Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"In light of the efforts to keep inflation low Government will also be embracing reforms on enhancing efficiencies of public utilities. This will ensure that the shocks on inflation from the utilities are minimised" says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"The introduction of the foreign exchange auction in June 2020 has managed to stabilise the exchange rate, which, in turn, anchored inflation expectations and slowed down the increase in prices witnessed before June 2020." #2021Budget #NDS1 #Vision2030

"52.Official exchange rate has stabilised around US$1:ZWL$81 throughout the months of July to November, while the parallel market exchange rate premium, which had risen to more than 300% when the auction was introduced has fallen to less than 10%" #2021Budget #NDS1 #Vision2030

"Most prices are now aligned to the official exchange rate instead of being indexed to the parallel exchange rate as was the practice before the auction system," states Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

@MthuliNcube "In 2021, the exchange rate is expected to remain stable, supported by the auction market exchange rate system and improved supply of foreign currency as the economy and trade, pick up." says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Most commodity prices (nickel, platinum, copper, chrome, coal & cotton) except for gold & rhodium have fallen amid weaker global demand occasioned by the COVID-19 pandemic. Gold prices have benefited from safe haven demand amid global uncertainty." #2021Budget #NDS1 #Vision2030

"Merchandise imports are estimated to have contracted by 4.3% to US$3.2 billion in the first nine months of 2020 from US$3.3 billion for the same period in 2019." #2021Budget #NDS1 #Vision2030

"Reflecting developments to date, the overall current account balance for 2020 is projected to be in surplus at about US$1,229.3 million, to give two consecutive years of positive current account balance," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"The banking sector remained adequately capitalized, with aggregate core capital of ZW$29.85 billion as at 30 September 2020, a 42.21% increase, from ZW$20.99 billion as at 30 June 2020." #2021Budget #NDS1 #Vision2030

"@ReserveBankZIM is working closely with banking institutions to ensure the sector remains adequately capitalized and has demonstrable capacity to meaningfully support the funding requirements of the economy." #2021Budget #NDS1 #Vision2030

"The quality of the banking sector loan portfolio continued to improve, as reflected by a decline in the non-performing loans (NPLs) to total loans ratio, from 1.03% as at 30 June 2020, to 0.41% as at 30 September 2020." #2021Budget #NDS1 #Vision2030

"All banking institutions were profitable during the period under review. Aggregate banking sector profits for the period ended 30 September 2020 amounted to $23.37 billion up from $2.09 billion reported for the corresponding period in 2019." #2021Budget #NDS1 #Vision2030

"The Bank remains focused on the evaluation and assessment of the impact of financial inclusion initiatives during the first phase of the National Financial Inclusion Strategy (NFIS), which is coming to an end in December 2020 and is informing NFIS Phase 2." #2021Budget #NDS1

"Since the launch of the National Financial Inclusion Strategy in March 2016, there has been notable progress on access to formal financial services by the targeted groups such as women, MSMEs and the youth." #2021Budget #NDS1 #Vision2030

"Total loans to Women, MSMEs and youth increased from $2.25 billion, $1.46 billion and $669.51 million as at 31 March 2020, to $2.54 billion, $2.90 billion and $964.86 million as at 30 June 2020, respectively." #2021Budget #NDS1 #Vision2030

"Performance of the 2020 Budget continue to inspire hope and confidence in the management of the fiscus, stabilisation and building of appropriate conditions for stimulating economic activity." #2021Budget #NDS1 #Vision2030

"Major contributors to total revenue collections were Tax on Income and Profits (TIP), 35%. Tax on Income and Profits’ contribution to total revenue is followed by (VAT) at 25% and the Excise duties at 14%." #2021Budget #NDS1 #Vision2030

"The budget was generally in the surplus over the period January to September 2020, save for March, April and July, where there were pressures for mitigating the impact of the COVID-19 pandemic, cushioning of civil servants as well as other operational cost escalations."

"In the outlook, a budget deficit of ZWL$4.9 billion (-0.5% of GDP) is anticipated by end of 2020, reflecting better performance of revenues against managed expenditures," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Domestic Debt as at 30 September 2020 was ZWL$12.5 billion, which is 1.2% of GDP and 1.8% of the total public debt," states Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Total external debt is estimated at US$8.2 billion, as at end September 2020. This is an increase by US$106 million from the end 2019 amount of US$8.09 billion and was mainly on account of penalties and interest arrears." #2021Budget #NDS1 #Vision2030

"Multilateral external debt as at end Sept 2020 stood at US$2.65 billion, of which 90% are arrears. Arrears to the World Bank Group are US$1.33 billion, African Development Bank US$689 million, European Investment Bank US$329 million & other multilateral creditors US$28 million"

"Bilateral external debt is estimated at US$5.56 billion (68% of total PPG external debt), of which arrears account for 71% of total bilateral debt. Debt owed to the Paris Club creditors stood at US$3.63 billion and Non-Paris Club, US$1.63 billion." #2021Budget #NDS1 #Vision2030

"During the period January to September 2020, a total of US$579.8 million was disbursed by Development Partners, of which US$448.4 million was from bilateral whilst US$131.4 million was from multilateral partners." #2021Budget #NDS1 #Vision2030

"In 2021, it is projected that Development Partner assistance will amount to US$841.5 million, of which US$559.3 million is expected from bilateral, whilst US$282.1 million will be from multilateral partners." says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Macroeconomic stabilisation has brought some stability in real wages. However, Government is committed to continuously review the remuneration of civil servants guided by macro fundamentals and capacity of the Budget." #2021Budget #NDS1 #Vision2030

"In recognition of the hard work by the civil servants, Treasury has made arrangements to pay bonuses in a staggered approach between November and December 2020." #2021Budget #NDS1 #Vision2030

"The Stimulus Package of ZWL$18.1 billion also targets manufacturing sector as part of support to productive sectors affected by the COVID-19 pandemic," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"The Zimbabwe Investment Development Agency (ZIDA), as a vehicle for promoting an appropriate and competitive investment environment, is now fully functional following the enactment of the Zimbabwe Investment and Development Agency Act in February 2020." #2021Budget #NDS1

"Value chains are a critical industrial development strategy as they promote inclusive growth, as well as economic viability and sustainability for both business and beneficiary groups." #2021Budget #NDS1 #Vision2030

"The Buy Zimbabwe Campaign is designed to unlock our country’s full potential and support economic growth and competitiveness of local brands, jobs generation and management of the import bill. It also supports our strategy on domestication of value chains." #2021Budget #NDS1

"In 2021, Government will resuscitate Ziscosteel through innovation and harnessing inward opportunities, while working closely with local investors. This will be done through courting new investors who will bring new technology and new skills." #2021Budget #NDS1 #Vision2030

"ZWL$2.3 billion has been allocated to the Ministry of Industry and Commerce (@Min_of_IC) to spearhead the industrialisation thrust." #2021Budget #NDS1 #Vision2030

"The country targets to grow manufactured exports by 4.1% in 2021 from an estimate of 3.6% in 2020. This will be achieved through focusing on diversifying exports into non-traditional markets and exploiting existing preferential trading agreements with various countries."

"Efforts will also be made to strengthen strategic partnerships and networks with development cooperating partners and other organisations such as Eosta, Europe-Africa-Caribbean-Pacific Liaison Committee (COLEACP) and the EU." #2021Budget #NDS1 #Vision2030

"Govt is committed to empowering the disadvantaged and marginalised members of the society. Govt is setting aside resources equivalent to US$37.5 million for the benefit of women and US$37.5 million for youth entrepreneurs, plus US$37.5 million for war veterans."

"The 2020 National Budget alluded to the established the National Venture Capital Fund. The objectives of the Fund are to encourage entrepreneurship by youth and women, and to help start-ups to grow, generate new employment opportunities and this will stimulate economic growth."

"The Budget will therefore provide funds for the National Venture Capital to commence its operations in assisting start-ups and other small firms in accessing financial capital, technology and knowledge." #2021Budget #NDS1 #Vision2030

"Youths and women will be primary empowerment and job creation targets in as much as they are the majority who make an important contribution as productive workers, entrepreneurs, consumers, and agents of change." #2021Budget #NDS1 #Vision2030

"Government launched the Cultural and Creative Industries Strategy 2020-30 (CCIS) which is a roadmap that guides the development and growth of the cultural and creative industries sector," says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

@MthuliNcube "In terms of export earnings, mineral exports were around US$2.4 billion for the period January to September 2020, compared to US$2.1 billion recorded over the same period in 2019." #2021Budget #NDS1 #Vision2030

"Revival of the tourism industry is set to achieve a US$5 billion by 2025, anchored on the country’s abundant natural resources, rich cultural heritage and diverse scenery." #2021Budget #NDS1 #Vision2030

"Govt has exempted VAT on all tourism services for domestic tourists in a bid to reduce the prices of tourism products and services. The recently launched ZIMBHO/Vakatsha promotion will also help encourage locals to visit tourist attractions in the country." #2021Budget #NDS1

"Consistent with the NDS1, investments under the Road Development Programme will be prioritised in 2021, with overall support towards the roads sub-sector amounting to ZWL$31.6 billion." #2021Budget #NDS1 #Vision2030

"Motorists are experiencing increased delays at toll gates, due to inefficient systems of collections. To address congestion and improve on revenue collection, an amount of ZWL$1.1 billion has been set aside from the Fund towards upgrading and construction of tollgates."

"Government has also allocated ZWL$535 million to @zinwawater to enable the parastatal immediately undertake detailed designs, including commencement of works on the conveyancing infrastructure to Bulawayo." #2021Budget #NDS1 #Vision2030

"There is enormous potential for solar and mini-hydro plants still to be exploited and private sector interest has steadily increased, adding to the national grid by Independent Power Producers." #2021Budget #NDS1 #Vision2030

"In order to improve access of ICT services, Govt will facilitate deployment of broadband infrastructure & investments in Last Mile Connectivity by industry players that will ensure affordable, accessible, ubiquitous and reliable ICT services that support a digital economy"

"The Devolution policy, which recognises the right of communities to manage their own affairs and to further their own development, with the various tiers of Govt complementing each other in providing efficient and effective service delivery to the citizenry, is progressing well"

"Overall support for public works during 2021 amounts to ZWL$10 billion, covering institutional and other housing development interventions as indicated in the table below." #2021Budget #NDS1 #Vision2030

"The NDS1 provides a commitment to revamp the public health infrastructure, covering upgrading and construction of health facilities, installation of medical equipment, procurement of ambulances and utility vehicles." #2021Budget #NDS1 #Vision2030

"As Government pursues industrialisation and modernisation, the education sector plays a pivotal role in re-skilling and right-skilling the current and future workforce, matching the demand by the industry." #2021Budget #NDS1 #Vision2030

"During the first 8 months of 2020, the country has received close to US$1 billion in the form of remittances. Therefore, the 2021 National Budget will seek to actualise some of the strategies outlined in the Zimbabwe Diaspora Policy" #2021Budget #NDS1 #Vision2030

"I propose to review the Tax-Free Threshold from ZWL$5 000 per month to ZWL$10 000 per month." says Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

"Government reduced the corporate income tax rate from 25 to 24 percent with effect from 1 January 2020. The decision was motivated by the desire to enhance the return on equity, a key success factor in the drive towards improving investment flows." #2021Budget #NDS1 #Vision2030

"I, therefore, propose that businesses pay corporate income tax in foreign currency on the basis of gross foreign currency receipts remaining after deducting the prescribed retention or liquidation thresholds." #2021Budget #NDS1 #Vision2030

"Following Government’s authorisation of the use of foreign currency on the local market, Value Added Tax Registered Operators are compelled to configure Fiscal Devices to capture all transactions in the currency of trade." #2021Budget #NDS1 #Vision2030

"In line with Government’s policy thrust to promote investment into power generation, I propose to repeal the tax exemption applicable to receipts and accruals of power generation projects." #2021Budget #NDS1 #Vision2030

"In line with the NDS1, which underscores value addition, I propose to remove second hand motor vehicles aged 10 years and above, from the date of manufacture at the time of importation, from the Open General Import Licence" #2021Budget #NDS1 #Vision2030

"People of all backgrounds want to be assured that, through the Budget, we are doing all we can to make sure that promises become a reality. And that’s what is required of us now, each playing our part to meet the common goal of growing our economy." #2021Budget #NDS1 #Vision2030

"Precisely, this what the Budget & the NDS1 are seeking to address. I end with a quote from an English Philosopher & Economist, John Stuart Mills, ‘All good things which exist are the fruits of originality’ & indeed, we are charting a better future through the NDS1 & this Budget"

"I commend the 2021 National Budget to this August House," concludes Finance Minister @MthuliNcube #2021Budget #NDS1 #Vision2030

Thank you, Zimbabwe! #2021Budget #NDS1 #Vision2030