By 
Minister of Finance and Economic Development Professor Mthuli Ncube during his presentation of the national 2023 budget yesterday said he projects total expenditure will more than double to 4.2 trillion Zimbabwe dollars ($6.5 billion).
Minister Ncube said The bulk of the funds will be spent on social services and infrastructure projects, with a key focus on the mining, energy and agricultural sectors to stimulate economic growth.
Professor Mthuli said all this in his budget presentation to lawmakers at the new Chinese-built Parliament in Mount Hampden, 23 kilometers (14 miles) north of the capital, Harare.
The Gross domestic product (GDP) growth is estimated to slow to 3.8% next year from 4% forecast for 2022, he said.
The economic growth globally is being crimped by tightening financial conditions as central bankers including Zimbabwe’s Reserve Bank of Zimbabwe RBZ Governor Dr John Panonetsa Mangudya try to temper high inflation, adding to the damage from the war in Ukraine and China’s slowdown.
The country’s benchmark interest rate is at 200%, while annual inflation is at 269%.
International Monetary Fund IMF last month cut its forecast for global growth next year to 2.7%, from 2.9% and sees Zimbabwe’s economy expanding at 2.8%.
Minister
Ncube also expects Z$3.9 trillion in revenue
Plans to increase value-added tax to 15% from 14.5% from Jan. 1
And allocated Z$76 billion toward next year’s general elections, in which President Emmerson Mnangagwa is seeking re-election.
The Budget deficit to GDP is forecast at 1.5% and to plug the funding gap, the government plans a bond issuance on the Victoria Falls Stock Exchange
Offers tax relief measures including cutting an electronic tax levied on US dollar transactions to 2% from 4%.
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