Development Watch Volume 3, Issue 4

As we already highlighted in our previous issue, Development Watch Volume 3, Issue 3, this issue incorporates an analysis of the midterm review statement of the performance of the 2021 National Budget for the period January to June 2021. The statement was presented before the Parliament of Zimbabwe by Finance Minister Mthuli Ncube on Thursday last week. The 2021 Mid-Term Budget and Economic Review provides an assessment of the performance of the economy and the 2021 Budget during the first half of the year, together with macro and fiscal outlook to year end. This is in compliance with Section 7 (2) (a) of the Public Finance Management Act and Section 9 of the Public Finance Management (General) Regulations of 2019. Guided by first half developments, the Review also gives Government an opportunity to make necessary policy re-alignments to ensure that set economic and fiscal objectives and targets for the year are met. To note, The Mid-Year Budget Review is one of the key budget documents used by the International Budget Partnership (IBP) in carrying out the Open Budget Survey (OBS). The Mid-Year Budget Review presents an opportunity for the treasury to comprehensively assess the government’s fiscal performance against the strategy established in the Enacted Budget. Thus, it should allow for an assessment of whether the budget is adequately coping with emerging macroeconomic developments, including changes in the prices, the state of implementation of the different elements of the budget, and revenue in the context of expected patterns. For more, please download the attachment below: