The allocations on Health and Basic Education are below the Abuja Declaration (2001) and the Education for All Initiative (2000) targets/benchmarks of 15% and 20% respectively. High tax rates encourage tax evasion and force small businesses to go/remain, informal. For instance, in the Democratic Republic of Congo (DRC) which has one of the highest recorded rates of business taxation, it is estimated that about half of manufacturing activity is informal. We are located at the 4th Floor, Block E, New Government Complex, Corner Samora Machel and Fourth Street, Harare, Zimbabwe. Prof Ncube said recent shocks in the form of droughts, cyclones and the Covid-19 pandemic, have undermined Zimbabwe’s efforts to build physical infrastructure and delivery of planned public services, hence the need to build resilience. This is critical if we are to increase aggregate demand in the economy. These taxes may end up driving these informal businesses further underground. ZIMBABWE 1 Embargoed Till End of Delivery THE 2020 NATIONAL BUDGET STATEMENT ‘Gearing for Higher Productivity, Growth and Job Creation’ Presented to the Parliament of Zimbabwe On November 14, 2019 By The Hon. Countries that invest a lot on health do better economically than countries that invest little. Download File: 2021 National Budget Speech.pdf. The compensation will also extend to pensioners, who will be compensated with resources equivalent to US$75 million. ICOD Zimbabwe represents more than 3000 women and women with disabilities and is present in Masvingo and Midlands provinces of Zimbabwe. Budget Speech in National Assembly – Thursday 26th November. The teams will cover various places in Zimbabwe as follows: Team A Agriculture was less affected as the summer cropping season was almost over when the pandemic hit. THE 2021 NATIONAL BUDGET SPEECH “Building Resillience and Sustainable Economic Recovery” Presented to the Parliament of Zimbabwe. Year on year inflation is projected to reach 9% by the end of 2021. The Finance minister of Zimbabwe announced the 2021 Budget. 150 000 formal jobs are expected to be recovered after having been lost due to COVID-19 pandemic. Check your inbox or spam folder now to confirm your subscription. By submitting above, you agree to our privacy policy. However, the socio-economic context remains very challenging, for instance, the incidence of extreme poverty increased from 29% in 2018 to 34% by the end of 2019. In terms of vote allocations, Primary and Secondary Education was allocated the highest share at 13,1% down from 13,3% in 2020, followed by Health and Child Care at 13% up from 10,1% in 2020, and then Agriculture at 11% down from 17,5% in 2020. Zimbabwe’s 2021 national budget towards a social protection to all vulnerable groups, in total, has an allocation of ZW$6,9 billion (US$793 million) to the Ministry of Public Service, Labour and Social Services, which is 1,64% of the budget down from the 2020 percentage share of 4,3%. Minister for Finance Mthuli Ncube has delivered the 2021 National Budget which will be running under the recently launched economic recovery plan NDS1. on November 26, 2020. The Official Website of the Ministry of Finance and Economic Development of Zimbabwe. It is anchored on the following seven thrusts/priorities: inclusive growth and macro-stability; developing and supporting productive value chains; optimising value in our natural resources; infrastructure, ICT and digital economy; social protection, human capital development and well-being; effective institution building and governance and engagement and re-engagement. The increase in sin taxes is a welcome development. 11/27/2020 0. This is in line with international best practice. The budget would lay out the inaugural 12 months long implementation tool of the Government’s newly announced five-year economic policy, the National Development Strategy (NDS1 2021 … Grain Millers Association of Zimbabwe national chairman Mr Tafadzwa Musarara told The Herald last night that the 2021 Budget was positive. By. Speaking during a Pre-Budget seminar minister of Defence Oppah Muchinguri-Kashiri said her ministry was underfunded in the previous budget. The minister expected to walk on a tight rope, with various ministries expecting an increase in allocations. Zimbabwe bans importation of second hand cars older than 10 years..Ncube 2021 Zim budget highlights, breakdown Nov 27, 2020 | Business , Zim Latest ZIMBABWE FINANCE Minister, Professor Mthuli Ncube Thursday afternoon announced that importation of second hand vehicles older than 10 years is now controlled, after they were removed from the Open General Import Licence. This would help to enhance confidence in the financial sector. Proceedings will then be adjourned until Tuesday 8th December. The 2021 National Budget is based on the theme "Building Resilience and Sustainable Economic Recovery". Also given the rising incidence of non-communicable diseases (NCDs) in the country, this should help to put a check to that. THE 2021 national budget due to be presented this afternoon presents one of the toughest challenges for Finance minister, Mthuli Ncube. This site uses Akismet to reduce spam. Analysis - ZIMBABWE'S 2021 national budget will be presented this November, with a lot at stake in terms of improvements in public service delivery from the government. We are open for Business from 8:00hrs to 16:30hrs, every Monday to Friday except Public Holidays. It is that time of the year once again when the Parliament of Zimbabwe conducts the national budget consultations in selected parts of the country to gather people’s views and aspirations on the National Budget. To address comments or complaints, please Contact us. These projections are however dependent on a good agricultural season, among others. We are located at the 4th Floor, Block E, New Government Complex, Corner Samora Machel and Fourth Street, Harare, Zimbabwe. The Official Website of the Ministry of Finance and Economic Development of Zimbabwe. Gender, Economic Policies and Public Finance (GEPPF) 1. Hon. Minister of Finance & Economic Development. To complete the process, please follow the instructions in the email we just sent you. The National Budget comes at a time when the country has achieved some measure of stability on the foreign exchange markets as well as on the inflationary front, thereby providing an important basis for growing the economy. This suppressed output, productivity and capacity utilisation. The Youth Employment Tax Credit for each employee hired has also been reviewed upward from ZW$500 to ZW$1 500 per month, and the limit on the maximum credit from ZW$60 000 to ZW$180 000 in a year of assessment. The government of Zimbabwe has started processes to develop the 2021 National Budget. Morocco, Israel Normalise Ties As U.S. On a positive note, the 2021 National Budget has clear employment creation and poverty reduction targets. Out of the ZW$421,6 billion budget, capital expenditures constitute ZW$131,6 billion (US$1,6 billion) (5,5% of GDP), while recurrent expenditures are expected to consume ZW$290 billion (US$3,5 billion) (12,1% of GDP) with employment costs projected at ZW$142,6 billion (US$1,74 billion) (5,9% of GDP). Our Work. It is an instrument of resource allocation in order to ensure not just a rapid pace of GDP growth, but also the achievement of important development imperatives such as price stability, employment creation and poverty reduction. On the other hand, the Ministry of Defence was allocated ZW$23,8 billion (US$291 million) (5,65% of the Budget), while the Ministry of Home Affairs was allocated ZW$23,6 billion (288 million) (5,6% of the Budget). Except where otherwise noted, content on and from this site is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Tags: National; Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. AS Finance minister Mthuli Ncube presents the 2021 National Budget this Thursday, many locals say they were expecting government to dump its traditional bias towards security ministries in … The PAYE tax free threshold should have been reviewed in line with the Poverty Datum Line (PDL) which is pegged at ZW$17 965,87 (US$219) as at September 2020 as a way of boosting disposable incomes. Agriculture Ministry to be allocated $46,3 billion in the 2021 National Budget. 19 October 2020. These sin taxes which are essentially a consumptive tax on "demerit goods" are less "distortionary" and they will also help government to mobilise additional revenues. Government is projecting to spend not more than ZW$421,6 billion (US$5,1 billion) in 2021 (17,6% of GDP) up by 160% from a projected ZW$162,4 billion (US$1,98 billion) in 2020. Currently, only about 7% of Zimbabweans have access to medical insurance and this is too low. Industrialists welcome Mthuli Ncube’s 2021 Budget. COVID-19 pandemic hit an economy already dealing with devastating impacts of climatic shocks of drought, Cyclone Idai and Cyclone Kenneth. Government reprioritised budget allocations and announced $18.2 billion Stimulus Package to save lives and livelihoods. The Minister is proposing an upward review in the presumptive tax structure aimed at the informal economy to broaden the tax base. A national budget can be defined as a statement of government's estimated revenue and proposed expenditure for the year. Finance Minister Mthuli Ncube is expected to present the 2021 National Budget on Thursday this week. The Budget is also well aligned to the National Development Strategy 1 (NDS-1). Ncube is projecting a 7.4% overall GDP growth, with year-on-year inflation by the end of 2021 reaching 9%. Empirical and case study evidence from many countries suggests that tax compliance rates rise as tax rates fall. 2021 National Budget: The good, the bad and the ugly Posted on December 4, 2020 by The Zimbabwe Independent in Opinion A national budget can be defined as a statement of government’s estimated revenue and proposed expenditure for the year. Prof. Mthuli Ncube. Please click here for the 2021 National Budget Statement. THE 2021 budget presented by Finance minister Mthuli Ncube last week missed a golden opportunity to stimulate various productive sectors of the economy. The Minister is proposing an upward review of excise duty on alcoholic beverages and cigarettes. Government’s response aimed at ensuring strong economic recovery building on the milestones from the Transitional Stabilisation Programme (TSP) and targeting additional support measures to cushion vulnerable households. One of the reasons why businesses choose to be informal is because of the onerous tax regime which increases the cost of compliance thereby disincentivising informal businesses from formalising. Quick NetOne, Telecel, Africom, And Econet Airtime Recharge, Some Web & Mobile App Developers in Zimbabwe, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Workshop on National Development Strategy 1 (2021-2025) Two weeks ago – see Bill Watch 74/2020 [] – the delay in the finalisation of the National Development Strategy 1 (2021-2025) [NDS1] document caused the postponement to this week of the next major fixture on the Budget Business programme – the Pre-Budget Seminar. Your email address will not be published. T HE 2021 National Budget must provide a clear government position on the Extractive Industries Transparency Initiative (EITI), including steps that the government will undertake to implement EITI or its local version, the Zimbabwe Environmental Law Association (Zela) has said.. Highlights From the Zimbabwe 2020 National Budget courtesy of newZWire. 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