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Ministry of Finance
November 29, 2007
- Word 97
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1. Mr Speaker Sir, I
move that leave be granted to bring in a Bill to make Provisions
in connection with Revenues and Expenditures of the Republic of
Zimbabwe for 2008 and to make Provisions for matters ancillary and
incidental to this purpose.
2. Allow me to begin
by expressing my sincere gratitude to Honourable Members of Parliament
for the support and guidance they continue to provide me in the
formulation and implementation of the National Budget.
3. The Budget formulation
process also benefited from wide inputs following consultations
with other stakeholders in the major centres countrywide.
4. I believe it is through
such engagement that we develop and build the necessary consensus
for us to prevail over our economic challenges.
5. As Honourable Members
are aware, our economy is confronted with the twin challenges of
economic contraction and high inflation.
6. Rising inflation has
been felt across the entire spectrum of our society, making the
budgeting process difficult. Budget implementation is equally undermined
as frequent adjustments to prices of goods and services erode the
purchasing power of Ministries' allocations, compromising
delivery of essential services.
7. By increasing the
cost of doing business, inflation also reduces the scope for long-term
planning, growth and development. The impact on the general population
is loss of jobs in the formal market and declining real incomes.
8. The thrust of the
2008 National Budget is, therefore, geared towards stabilising the
economy, increasing productivity and lowering inflation. This will
be driven by the 2007/2008 agricultural season which has been dubbed
the Mother of All Agricultural Seasons.
9. Accordingly, budgetary
support and other fiscal incentives will be availed to agriculture
and to the other productive sectors of the economy.
10. Deliberate interventions
will also be targeted towards support for small and medium enterprises
(SMEs) and grass-root productive activities under Women, Youth and
other Community initiated programmes. These are labour intensive,
and offer considerable opportunities for employment and income generation
11. Consequently, this
Budget has been dubbed The People's Budget. It is dubbed The
People's Budget because it is geared to reduce inflation by
enabling communities at grassroots level to generate their own goods
and services at affordable prices.
12. The anticipated increase
in production, on the back of Government interventions, will have
the effect of reducing prices, thereby placing the economy on a
sustainable recovery and growth path characterised by declining
13. Mr Speaker Sir, before
highlighting the specific measures to support the recovery of our
economy, allow me to first review our domestic economic developments
since January, and fiscal performance to October 2007.
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