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