HomeNewsBudget demands to top $20 billion

Budget demands to top $20 billion


FINANCE minister Tendai Biti projects that allocation requests by various entities to the 2013 National Budget would top the $20 billion mark.

Report by Senior Reporter
Presentation of the National Budget has been set for November 15.

Treasury together with Parliamentary Committee on Budget, Finance and Investment Promotion is currently gathering views on next year’s financial allocations.

“Our current resources are a mere drop to the national demands,” Biti told a Budget consultative workshop in Bulawayo last week.

“I can guarantee you that the projections or demands to be submitted will be in the range of $15 billion to $20 billion. But our resources cannot cater for that amount,” he said.

Zimbabwe has been operating on a cash-Budget principle since early 2009 as donors continued to shun the country after the Bretton Woods Institutions — the International Monetary Fund (IMF) and the World Bank — pulled the plug resulting in the termination of balance of payments support.

In July, Biti was forced to slash his 2012 Budget from $4 billion
to $3,4 billion following the under perfomance of  diamond revenue.

At least $600 million was expected from diamond sales this year, but only $41,6 million had been received during the first half of the year.

In a pre-Budget paper delivered early this month, Biti forecast the economy to grow by almost 9% next year. IMF has, however, projected the economy would grow by 5%.

The exchequer disclosed that from consultations conducted to date funding of education and health were viewed to be the most critical areas that should take priority.

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