Nation waits for what is in Mthuli’s sleaves as he presents Mid Term Budget review this afternoon

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, is this afternoon expected to deliver the 2024 mid-term budget review and business leaders and captains of industry are optimistic he will announce measures that further entrench the free market economy, foster exchange rate stability and promote wider use of the domestic currency – the ZiG.

Mthuli is expected to present the review of this year’s expenditure plan at new Parliament building, which must balance competing interests, including driving economic growth, maintaining stability and cushioning vulnerable citizens following a devastating El Nino induced drought.

The Zimbabwe National Chamber of Commerce (ZNCC) president, Tapiwa Karoro, said the Government should address critical issues impacting the business environment and the economy at large.

He emphasised the need to embrace market forces for exchange rate stability, entrenching the use of the local currency, and reduction of the Intermediated Money Transfer Tax (IMTT) on local currency transactions.

Karoro also called for realistic and adequate budget allocations for Government ministries, departments, and agencies, as well as clarity on the funding framework for ongoing long-term government programs. He stressed the importance of prioritising debt arrears clearance to unlock new funding lines and ensuring effective border management to reduce financial leakages.

George Nhepera, a financial analyst said the market expected a mid-term budget review that complements monetary policy in creating demand for the local currency through taxes, leading to currency stability.

He emphasised the need for the Ministry of Finance to support the currency, citing the recent decline in the black market rate due to lack of support.

Another economist, Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe’s Monetary Policy Committee, said the fiscus faces pressure from drought and softening commodity prices. He expects the mid-term budget review to have additional measures to promote judicious management of the budget, support stability, and underwrite the local currency through measures such as payment of Quarterly Payment Dates (QPDs) taxes.-ebusinesswekly