Back to Index

2013 Mid Term Fiscal Policy statement
Tendai Biti, Minister of Finance
July 25, 2013

Download this document
- Acrobat PDF version (10.2MB)
If you do not have the free Acrobat reader on your computer, download it from the Adobe website by clicking here.

Introduction

1. The 2013 Mid-year Fiscal Policy Statement is being presented in compliance with Section 7 of the Public Finance Management Act [Chapter 22:19], which obliges the Minister responsible for Finance to provide full and transparent accounts, indicating the current and projected state of the economy, the public resources of Zimbabwe and the fiscal policy of Government.

2. The Statement also seeks to update the Nation at large on the fiscal and economic developments during the first half of the year and the outlook to December 2013.

3. The Statement also draws from the 2013 National Budget presented to Parliament on 15 November 2012.

4. In that Budget, the fundamental policies and interventions for unleashing Zimbabwe’s growth potential and sustaining efficient and inclusive growth were anchored on the 15 Point Plan, which focused on macro-economic stability, enhanced revenue generation, expenditure management, increased investment for growth, and debt resolution, among others.

5. Implementation of some of these strategic issues is on track, while some will require further Government attention during the last half of the year and beyond.

6. In this regard, the Staff Monitored Programme (SMP), approved by Cabinet and signed off with the International Monetary Fund (IMF) on 5 June 2013, will also guide macro-economic policy implementation during the last half of 2013 and into 2014, targeting debt relief and unlocking new inflows of development finance.

7. Implementation will be under the auspices of Zimbabwe’s hybrid debt resolution strategy, the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS), as well as the Zimbabwe Accelerated Re-engagement Economic Programme (ZAREP) 2012 – 2015, launched by the Inclusive Government on 16 March 2012 to facilitate accelerated reengagement with development partners.

8. Specific policy issues enunciated in ZAREP and the SMP evolve around:

• Fiscal consolidation and strengthening public financial management, including protecting investment in infrastructure and priority social spending;
• Completing the structural reform agenda, including in the areas of tax policy and administration, and increasing transparency in collection of revenues from the mining sector;
• Enhancing financial sector stability and reducing vulnerabilities;
• Completing the reforms at the Reserve Bank of Zimbabwe, especially the restructuring of its balance sheet and strengthening the banking sector regulatory and supervisory framework;
• Building international reserves; and
• Implementing a prudent borrowing strategy and strengthening debt management through the implementation of measures contained in the ZAADDS policy document.

9. Progress in the implementation of the SMP will be evaluated through bi-annual reviews for end June and end December 2013 performance targets.

10. Government has also initiated the process of developing an Interim Poverty Reduction Strategy Paper (I-PRSP) 2014 – 2015, which seeks to implement the Medium Term Plan (MTP) 2010 – 2015, particularly focusing on interventions targeted at reducing poverty.

Download full document 

Please credit www.kubatana.net if you make use of material from this website. This work is licensed under a Creative Commons License unless stated otherwise.

TOP