Projections in the Zimbabwe 2021 National Budget

Finance Minister Professor Mthuli Ncube, yesterday presented a 2021 National budget proposal with an expenditure ceiling of ZWL$421.6 billion an increase from the $70,548 2020 Revised budget. The following are projections in the 2021 National Budget Statement that goes with the theme ‘Building Resilience and Sustainable Economic Recovery’.
Zimbabwe’s economy is expected to rebound by 7.4% in 2021 from an estimated contraction of -4.1% in 2020. Growth will be driven by strong recovery in agriculture, mining, electricity, construction, transport and communication as well as finance and insurance.
Expectations are also that 150 000 formal jobs will be recovered in 2021 after having been lost due to COVID-19 pandemic.
Year on year inflation, which was at 471.25% in October 2020 is projected to average below 135% by the end of 2021. Government will be embracing reforms on enhancing efficiencies of public utilities in light of the efforts to keep inflation low.
The 2021 exchange rate is expected to remain stable, supported by the auction market exchange rate system and improved supply of foreign currency as the economy and trade, pick up.
The budget statement also targets a ZWL$30.8 billion (-1.3% of GDP) in 2021, an increase from -0.5 of GDP anticipated in 2020. The deficit will be met through the domestic market, in terms of financing.
Revenue collection for 2021 is projected to reach ZWL$390,8 billion from a projection of at ZWL$173.5 billion (16.3% of GDP) in 2020.
Expenditures to 2020 year-end are estimated to reach ZWL$162.4 billion and 2021 Capital Expenditure and Net lending are projected to reach ZWL$131,596.29.