2020 Mid Term Budget Review: Prospects for better economy constrained

In compliance with the Section 7 (2) (a) of the Public Finance and Management Act, the Minister of Finance and Economic Development presented the 2020 Mid Term Budget Review. The review is key to ensuring full and transparent accounts are regularly presented to Parliament. The Mid Term Budget Review is envisaged to highlight broadly the current and projected state of the economy, performance of the national income and expenditure and any major changes that could impact on the economy amongst other macroeconomic variables. Ideally, the review should provide details on economic developments during the first half of the year, progress on implementation of the 2020 National Budget and the macro-economic outlook and fiscal policy thrust, guided by the Transitional Stabilisation Programme (TSP) objectives. Apart from mere adjustment of budget figures in line with the contextual analysis of the prevailing macroeconomic environment, the review gave an evaluation of progress made to-date in the implementation of the TSP since its inception in October 2018. The Mid Term Budget Review presents interesting dynamics for various sectors of the country, which the National Association of Non-Governmental Organisations (NANGO) has attempted to unpack in brief. It is evident that the performance of the first six months of the year under review has a bearing on the performance of the economy during the last half of 2019 as well as the end term evaluation of the TSP. This review came amid the devastating COVID-19 pandemic which has seriously impacted the economic performance of many economies globally and to which Zimbabwe has not been spared. Clear policy recommendations on fiscal measures for economic growth and development while promoting sustainable developments through prudent and expeditious utilization of public resources shall be proffered in this policy brief. Read the rest of the brief in the PDF below.