Zimbabwe Set for 2010 National Budget

Zimbabwe’s finance Minister Tendai Biti has announced the official day of presenting the much-awaited 2010 National Budget in parliament.

During the debate on Public Finance Management Bill in Parliament last week, Biti confirmed the budget will be presented in the House on December 2. He projected the 2010 budget to be growth oriented and also would address the use of the South African Rand as its reference currency among others.

Zimbabwe adopted a foreign currencies policy in efforts to beat the economic recession following a record collapse of 79-billion percent in its economy with a currency denomination of a trillion Zimbabwean dollars.

This year’s US$ 1.98 billion annual budget has been a success after the formation of the unity government headed by President Robert Mugabe and Prime Minister Morgan Tsvangirai.The two principles formed the government after disputed presidential election. Its three percent growth is projected to increase next year according to the International Monetary Fund (IMF) report.

The informal sector having inhibited a large percentage of those declared jobless. This comes in after closure of factories in the country due to economic sanctions imposed to the Country. This year’s budget is expected to be allocated more funds to this sector. Agriculture, not left out is anticipated to get favorable funding in the budget since it supports most of its surviving industries.

The National Association of Non-Governmental Organisation has urged the government to put more emphasis on social ministries like education, health and social welfare. A proper mechanism also to be laid in ensuring that allocated funds trickle down to the grassroots.

Following a review of its policies the Zimbabwean government adopted a cash budgeting mechanism that allows it to spend only what has been collected through revenue and taxation.

About 13-million Zimbabweans depend on food aids from international humanitarian agencies. The European Union (EU) expects to reinstate its economic aid into the country once talks between its special envoy and government officials succeed. [ER].