Measures to cushion economy from local and global shocks to top budget review

By Stanley James, Business Editor

FISCAL policy measures to cushion the economy from the internal and global economic shocks are expected to feature in the national budget review set to be presented in July.

In light of the shocks emanating from geopolitical tensions in Eastern Europe, Zimbabwe’s economy has not been spared from related challenges.

With the country’s inflation reaching 131,7 percent in May and global economies facing uncertainties, the Parliamentary Portfolio Committee on Budget and Finance has embarked on  a consultative process for citizens to give their input on the mid-term budget review.

“Several adjustments are being expected on the back of current economic trends since January, so it is all about how the treasury is in a position to review the current situation for the benefit of the citizens,” said Honourable Matthew Nyashanu, Parly Portfolio Committee on Budget and Finance- Chairperson.

With government having already taken the lead in announcing several policy interventions to stabilise the economy, the committee is also recommending a budget review to set the tone on certainty.

“The recent pronounced measures on the economy are seemingly taking their toll on the economy such that we anticipate more measures to ignite confidence,” he added.

Some questions regarding the budget review include whether treasury will maintain the 5,5 percent growth forecast for this year, and whether it will make income tax free thresholds adjustments, among other things.