bitiiiiiiiiii.jpgThe Minister of Finance, Mr Tendai Biti has ruled out a supplementary budget this year after readjusting the 2010 national budget allocations to cover unfulfilled pledges by external financiers. 

 

Presenting the 2010 Mid-Term Fiscal Policy Review Statement, Mr. Biti said the arrangement will result in government realigning its financial allocations to cover some of the unfufilled promises in the form of vote of credit.

 

He said the fact that government has realised US$207 million from vote of credit against a projected US$810 million means that fiscal authorities face a tough task in balancing the act between revenue inflows and expenditure targets. 

 

Minister Biti said government is pinning hopes for recovery on agriculture which registered an 18% growth this year, whilst all the other key sectors of the economy recorded a drop in production levels.

 

He however said due to limited cash inflows ,government is expecting a total budget deficit of at least US$300 million.

 

Some of the highlights of the 2010 Md-Term Fiscal Policy Review include: the removal of duty on imported raw materials for manufacturing firms, the extension of a duty free window for imported basic goods to December this year, an increase in the tax free thresholds to US$175 from US$160, the revision of economic growth targets downwards to 5,4% from 7%, a projected annual inflation rate of 4,5% and the recapitalisation of the Reserve Bank of Zimbabwe.

 

With the 2010 Mid-Term Fiscal Policy Review Statement having been presented, what remains to be seen is whether it will consolidate economic gains achieved so far for the benefit of industry and households.