People-centred 2023 National Budget highlights
THE 2023 National Budget presented by Finance and Economic Development Minister, Professor Mthuli Ncube in Harare yesterday reinforced economic stability and availed funding for social sectors such as education and health.
The Budget will also support the capitalisation of youth and women empowerment institutions, as well as provide opportunities for marginalised groups to engage in productive economic activities that will transform their lives.
Economic growth and macroeconomic stability, complemented by supply side interventions, are expected to go a long way in ensuring the country’s conducive macroeconomic environment.
Below we look at some of the Budget highlights:
Public procurement system: Government has taken a firm position to ensure that in all public procurement contracts, value for money is realised.
Supporting productive value chains: The 2023 National Budget supports development and strengthening of existing value chains, promoting SMEs linkages with large corporates and identification of quick win value chains in agriculture, manufacturing and mining.
Agriculture: The sector will be anchored on innovative technologies and good agronomics through various programmes and projects aimed at promoting production and productivity. Government is providing agriculture inputs to vulnerable households under the Agriculture Productive Scheme (Pfumvudza/Intwasa) targeting 845 000 hectares under cereal and oil seeds at a cost of ZWL77 billion.
National Enhanced Agriculture Productivity Scheme: Government has issued a US$154.6 million equivalent local currency guarantee to AFC Bank to raise resources to finance maize, soya beans, sunflower and traditional grains.
Manufacturing: Since 2019, there has been a turn-around in the manufacturing sector, with capacity utilisation steadily increasing to current levels of about 66 percent, while domestic products now occupy 80 percent of shelves in supermarkets.
Developing and strengthening of domestic value chains: Government is capacitating IDCZ to value-add raw minerals into compound fertilizers and other products, currently being imported as part of the local content strategy.
Mining: The mining sector is expected to grow by 10.4 percent in 2023, underpinned by anticipated favourable international mineral prices, as well as increase in investment, especially in exploration, mine development and mechanisation. The 2023 Budget will support improvement in the mining environment by strengthening the legal framework, promote mining activities and value addition in an environmentally sustainable manner.
Tourism: The country registered a 115 percent rise in tourist arrivals to 352 719, compared with the same period in 2021. Domestic visits into the national parks rose by 90 percent from 90,909 in 2021 to 172,481 during the period January to May 2022.
Infrastructure, ICT and the digital economy: The ongoing public and private sector infrastructure investments are promoting economic transformation by lowering the cost of doing business and improving service delivery.
Transport: Overall support towards the transport sector during 2023 amounts to ZWL194.8 billion, of which ZWL 177.4 billion is earmarked for the road sector, with ZWL13.4 billion and ZWL$4 billion being channelled towards rehabilitation and upgrading of airports and the railway system.
Housing delivery: Government targets to construct 450 000 new housing units by 2025 in both the public and private sectors. This entails densification of settlements, creation of smart cities, adoption of cost-effective and affordable housing units, as well as use of alternative building technologies and designs resilient to climatic change shocks. Budget has set aside ZWL49.9 billion towards completion of ongoing housing projects.
Energy: The Budget will prioritise timeous completion of Hwange 7 and 8 Expansion Project, now at 95 percent completion, which will bring an additional 600 MW to the national grid.
Water and sanitation: Budget has a provision of ZWL30.4 billion towards the sector, hence the thrust of Government to scale up implementation of water and sanitation programmes and projects, targeting dam construction, conveyancing infrastructure and borehole rehabilitation
Youth, sport, arts &culture: Budget will support expansion and capacitation of Vocational Training Centres, capitalisation of youth empowerment institutions, as well as provide an opportunity for our youth to engage in productive economic activities and transform their lives.
Women, gender equity and SMEs: Empowerment initiatives are meant to ensure equal opportunities for all. The 2023 Budget will support the following empowerment institutions — Women Development Fund, Community Development Fund, Zimbabwe Women’s Microfinance Bank, EmpowerBank and Small and Medium Enterprises Development Corporation (SMEDCO).
Human capital development and well-being: A strong human capital base is critical for driving the economic transformation agenda and achievement of Vision 2030.
Health: Budget will target the provision of quality health services, notable projects are Lupane Provincial Hospital, Mutasa, Mashayamvura, four in Gokwe North and three in Centenary District, 30 poly-clinics and district hospitals. The Budget has set aside 11 percent of total expenditures towards the heath sector.
Education: Budget will direct resources towards increased free education coverage. ZWL777 billion is being allocated to both primary and secondary, as well as higher and tertiary education. Research and innovation will also be supported Social protection: Government will continue to provide social protection services through its mainstream programmes, namely harmonised social cash transfer, food deficit mitigation, basic education and health assistance, child protection services. ZWL50.4 billion has been set aside for that.
Harmonised elections: Budget is setting aside ZWL76 billion for the remaining activities covering voter registration, voter inspection and actual election conduct, among others.
Peace and security: Budget has set aside resources towards capacitation of the uniformed forces with accommodation, ration and equipment, as well as improving their remuneration, both monetary and non-monetary, in order to fight crime, maintain law and general peace and security.
War Veterans: The welfare of the veterans of the liberation remains a priority, with the 2023 Budget setting aside ZWL46 billion towards their monetary and non-monetary benefits, as well as capitalisation of their companies in mining, tourism, agriculture, among others.
Devolution: The year 2023 marks the fourth year since the Central Government started allocating at least five percent of revenue collections as inter-governmental fiscal transfers to lower tiers of Government as enshrined in the Constitution. Budget is ringfencing ZWL195.5 billion, being five percent of the anticipated revenue resources, towards lower tiers of Government in support of construction, upgrading and rehabilitation of facilities in health, transport, education, water and sanitation.