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2010 National Budget
Ministry of Finance
December 02, 2009

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1. Mr Speaker Sir, in terms of Section 103(1) of the Constitution of Zimbabwe, 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 the Financial Year January to December 2010 and to make Provisions for matters ancillary and incidental to this purpose.


2. Mr Speaker Sir, Honourable Members will recall that the main objective of the 2009 Budget presented on 17 March 2009 was to implement the Short Term Emergency Recovery Programme (STERP), whose main thrust was to restore macro-economic stability and growth as provided for in the Global Political Agreement (GPA).

3. Accordingly, the 2009 Budget proffered a number of policy measures complemented by resource allocations in support of strengthening the capacity of public institutions, restoring delivery of public services, rehabilitating infrastructure as well as cushioning vulnerable groups.

4. In my presentation of the 2009 Mid-Term Fiscal Review on 16 July 2009, I updated this August House on strides the Inclusive Government had made in implementing both the 2009 Budget and STERP.

5. These positive strides were particularly in the following areas, among others:

  • Macro-economic stabilisation particularly inflation containment;
  • Improved capacity utilisation in productive sectors of agriculture, mining and manufacturing, from below 10% to around 30% to 50%;
  • Removal of price distortions in both foreign exchange and goods markets;
  • Resuscitation of financial sector services;
  • Some improvement in public service delivery, particularly in the areas of water and sanitation, transport, health and education sectors;
  • Improvement in social protection programmes for vulnerable groups;
  • Overall business confidence building;
  • Policy consistency and predictability on key policy fundamentals;
  • The enactment of key legislation dealing with credibility of public accounts; and
  • Re-engagement with the international community.

6. Then, I particularly alluded to the reality that the economy remained fragile, notwithstanding significant positive gains realised in areas of inflation reduction and improvement in the supply of goods and services.

7. I further pointed out that the major challenge constraining speedy recovery was the unfinished business of political integration and harmony. I highlighted the fact that the uncertainty and the inconsistency of message and the continuous attrition inside the Inclusive Government remain major eye sores in the country's anatomy.

8. I further underlined the total absence of fiscal space, the restricted domestic financial capacity, lack of foreign direct investment and the absence of tangible external support, as major emasculating factors in our recovery efforts.

9. Furthermore, during the second Ministerial Retreat on the review of the implementation of STERP's 100—Day Plan in Nyanga in August 2009, there was consensus in the major deficit areas associated with the implementation of STERP.

10. These areas ranged from political and governance issues to high debt overhang, resource constraints, institutional capacity limitations as well as slow adaptation by various public and private institutions to the new dispensation and its demands and opportunities.

11. In short, what was clear in Nyanga, as it is clear now, is the massive unfinished agenda than what has so far been accomplished in the implementation of STERP, which programme incidentally is coming to an end on 31st December 2009.

12. It was on the realisation of the huge task that the Government Work Programme instructed and directed that Macro-Economic Framework be developed.

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