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Zimbabwe’s Finance Minister Mthuli Ncube delivered an optimistic 2021 $426 billion worth national budget. The upcoming year’s budget under the theme: Building Resilience and Sustainable Economic Recovery, is meant to be a gateway for an economic revival in the struggling country. 

The budget allocated a sizable proportion of the funds towards the health and education sectors.  

Key Budget Highlights

  • Budget size $421.6 billion
  • Revenue collection projected at $390.8 billion
  • Public debt $1.9 million
  • The economy is expected to grow 7.4% in 2021 following a consecutive decline in the past two years.
  • Year on year inflation is projected to end the year 2021 at 9% 
  • Upward review of tax-free threshold on salaries and 2% transaction levy and bonus.
  • Foreign currency-denominated corporate tax payments.
  • Tightening of Informal sector tax (Presumptive tax) collections.

Economic Recovery 

The minister presented optimistic growth metrics. The budget projects an anticipated 7.4% economic growth trajectory following two

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The government of Zimbabwe has set in motion an economic roadmap for the next 5 years. The new blueprint is anticipated to achieve a 5% growth in the country’s economy over a period of 5 years to 2025

Dubbed the National Development Strategy (NDS) 1, the economic blueprint replaces the transitional development strategy phase which the government says has achieved critical success.

The NDS 1 will therefore be rolled out under better economic conditions than the TSP and carries with it bold strategies and policies to catapult economic growth,” Mnangagwa said.

The country’s president Emmerson Mnangagwa announced the new plan which he said was supported by accelerated growth on the back of improvements in mining, agriculture tourism, and the manufacturing sector. 

The country is finance minister is expected to deliver the financial banking of this plan when he presents his budget this month

Some of the highlights of the economic