2022 budget to continue from 2021 successes: Prof Ncube

Source: 2022 budget to continue from 2021 successes: Prof Ncube | Sunday News (Business) Judith Phiri, Business Reporter  MINISTER of Finance and Economic Development Professor Mthuli Ncube says the 2022 National Budget seeks to buttress the growth trajectory established this year, and enable the economy to build resilience against shocks, including the Covid-19 pandemic. Presenting the […]

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Source: 2022 budget to continue from 2021 successes: Prof Ncube | Sunday News (Business)

Judith Phiri, Business Reporter 

MINISTER of Finance and Economic Development Professor Mthuli Ncube says the 2022 National Budget seeks to buttress the growth trajectory established this year, and enable the economy to build resilience against shocks, including the Covid-19 pandemic.

Presenting the 2022 National Budget under the theme “Reinforcing Sustainable Economic Recovery and Resilience” in Parliament yesterday, Prof Ncube said in 2022, the economy is projected to grow by 5.5 percent.

“In 2022, the economy is projected to grow by 5.5 percent, underpinned by higher output in mining, manufacturing, agriculture, construction, as well as accommodation and food services (tourism) sector.  The 2022 growth projection is, however, subject to risks relating to the future path of the pandemic and its impact on key sectors of the economy,” he said.

Prof Ncube said they endeavour to execute the Budget without wastages, delays and with timeliness.

Prof Ncube said the 2022 National Budget will seek to attain the strengthening of macro-fiscal stability; consolidating the Agriculture Food Systems Transformation Strategy that seeks to guarantee food security; advancing the policy on value chains and value addition for purposes of job creation and growth.

He said in 2022, support from the development partners is projected at US$764.7 million, mainly towards health, agriculture, social protection and governance.

Prof Ncube added: “Consistent with a growth projection of 5.5 percent in 2022, total revenue collections are projected at ZWL$850.7 billion (16.8 percent of GDP).  On the other hand, expenditures in 2022 are projected at ZWL$927.3 billion (18.3 percent of GDP). Total recurrent spending will constitute 13.4 percent of GDP, while capital programmes will take up 5 percent of GDP.  Employment costs will be contained at about 6.7 percent of GDP or 36.7 percent of revenues.”

In terms of allocation, the Minister said consequently, an allocation of ZWL$124 billion to Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement is provided under the Budget.

In order to achieve the desired US$12 billion mining industry by 2023, Prof Ncube said the Budget has a provision of ZWL$3 billion to the Ministry of Mines and Mining Development for implementation of various the programmes and activities.

A total of ZWL$3.9 billion was allocated to the Ministry of Industry and Commerce towards various programmes and projects.

He said: “An allocation of ZWL$3.7 billion to the Ministry of Environment, Climate, Tourism and Hospitality Industry, which should also cater for implementation of climate change mitigation measures. The 2022 Budget allocation to the Ministry of Youth, Sport, Arts and Recreation of ZWL$7.8 billion targets rehabilitation and upgrading of sporting facilities as well as youth entrepreneurship initiatives such as ‘youth in mining’ and ‘youth in agriculture’”.

In furthering the empowerment drive and inclusive society, the Budget has a provision of ZWL$4.7 billion for the Ministry of Women Affairs, Community, Small and Medium Enterprise Development for interventions tailor made to meet the needs of women.

Prof Ncube said the 2022 Budget provides an overall infrastructure spending plan of ZWL$156.4 billion to support mainly ongoing projects.  An amount of ZWL$10.9 billion has been set aside for capitalisation of State-Owned Enterprises while ZWL$23.5 billion is earmarked for capacitation of line Ministries in order to enhance public service delivery.

He said the Budget allocates ZWL$6.8 billion to the Ministry of Transport and Infrastructural Development for key programmes, ZWL$3.9 billion will be allocated to the Ministry of Energy and Power Development and a total of ZWL$29 billion is being allocated for various institutional accommodation projects and further ZWL$500 million for recapitalisation of the National Housing Fund.

He added: “A total of ZWL$2.1 billion will be availed to urban and rural local authorities. Furthermore, through the inter-governmental fiscal (devolution) allocation, an amount of ZWL$42.5 billion, being 5 percent of total revenues, will be disbursed to all local authorities for implementation of impactful community infrastructure projects.”

The 2022 National Budget is allocating ZWL$3.3 billion to the Ministry of Information Communication and Technology, ZWL$11.6 billion to the Ministry of Primary and Secondary and ZWL$5.7 billion to the Ministry of Higher and Tertiary Education, Science and Technology Development.

A total of ZWL$117.7 billion will be allocated to the Ministry of Health and Child Care which represents 14.9 percent of the Budget and ZWL$10 billion to the Ministry of Public Service, Labour and Social Welfare towards upscaling social protection programmes.

A total of ZWL$2.7 billion has been set aside for the Ministry of Information, Publicity and Broadcasting Services towards image building, international engagement and re-engagement programmes, as well as upgrading of transmission infrastructure and digital migration project.

The Ministry of Foreign Affairs and International Trade got ZWL$14.9 billion while ZWL$49.4 billion is being allocated to the Ministry of Home Affairs and Cultural Heritage and ZWL$61.5 billion to the Ministry of Defence and War Veterans Welfare.

An amount of ZWL$22.7 billion has been set aside for the Ministry of Justice, Legal and Parliamentary Affairs. ZWL$14.6 billion has been allocated to Parliament to enable the House to conduct its business in an effective and efficient manner.

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