Ncube to present 2021 National Budget this week

Finance Minister Mthuli Ncube is expected to present the 2021 National Budget on Thursday this week.

The minister expected to walk on a tight rope, with various ministries expecting an increase in allocations.

Speaking during a Pre-Budget seminar minister of Defence Oppah Muchinguri-Kashiri said her ministry was underfunded in the previous budget.

She said the ministry is swimming in a huge debt.

And the Minister of Justice, Ziyambi Ziyambi said more funds need to be allocated for the revamping the country’s dilapidated prison structures.

During the seminar, the Finance Minister was also implored to stick to the Abuja Declaration which states that 15% of the National Budget must be directed to the Health Sector.

Speaking during the seminar, Ncube said his budget will be premised on economic stability and enhancement of production.

“The 2021 National Budget will prioritise preserving the stability of the Zimbabwean dollar and arresting inflation to allow citizens room to save, invest and plan,” Ncube said.

Previewing the Budget in an interview at the end of Parliament’s three-day pre-budget seminar, Prof Ncube said price stability will be at the centre of his budget proposals.

Minister Ncube will present a $421 billion Budget in Parliament on Thursday.

“The overarching goal for this Budget is to support macroeconomic stability in terms of prices and currency stability and stability in the general environment. Because with stability we can do so much, companies can plan, people can save, citizens can postpone consumption and they can invest because they will know that the value of their currency is being preserved. In terms of specific measures, we will continue to support the Foreign Currency Auction System that we have put in place.”

The local unit has garnered significant stability since the introduction of the auction system in June. Before the system was launched, the Zim Dollar was trading at around US$1: $120 but has since stabilised at below US$1: $82 over the last two months.

-zwnews