The Mid-Term Budget and Economic Review went a long way in addressing market expectations as well as maintaining the prevailing economic stability, analysts have said.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube presented the review in the National Assembly last Thursday and pronounced policy measures to mitigate the effects of the El-Nino-induced drought and tax payment measures to strengthen demand for the ZiG.
Economic analyst, Mr Persistence Gwanyanya, said Prof Ncube had addressed most of the expectations in the market.
"Following the introduction of the ZiG currency, we expected the Government to announce measures to support the ZiG, to sustain stability that was ushered by the ZiG and that happened," he said.
"The expectation was that he would announce measures relating to the demand for ZiG and the measures related to management of liquidity and that happened. But also, we expected, given the occurrence of drought which is a national disaster as declared by the President, some support towards drought mitigation which happened.
"Regarding the issue of the demand for ZiG, Government indicated that taxes are going to be tilted more towards payment in ZiG and we have seen the tax head relating to the payment of corporate taxes which was initially by proposed by monetary authorities to be more payable in ZiG being entrenched into law."
In the statement, Prof Ncube said Government had adopted measures to address the effects of the drought, measures that include food deficit mitigation programme, cash for cereal programme, grain imports and agriculture inputs support.
He said this was in addition to measures already being implemented like the school feeding programme.
Chairman of the Portfolio Committee on Budget, Finance, Economic Development and Investment Promotion, Cde Clemence Chiduwa said the review statement had managed to address the challenges being faced by the economy.
"I would like to say the mid-term Budget and economic review came at a time the country is facing headwinds and these are headwinds emanating from the El-Nino-induced drought, so the presentation of the budget review by the Honourable Minister maintained the stance that we had in the 2024 national Budget of the need to consolidate economic transformation," he said.
"So, in terms of that we have stayed the course but what is critical is the interventions that have been done to deal with the headwinds, the headwinds of drought.
"In terms of drought, what we have seen is that the Minister has made sure that he came up with measures to deal with the problem of social protection, social protection in terms of drought mitigation measures, in terms of harmonised cash transfer, in terms of the Basic Education Assistance Module (BEAM) programme and these are the programmes that are going to lessen the burden on our people."
Cde Chiduwa said the Budget had also provided measures to maintain the stability brought about by the new currency through various tax measures.
"The Budget review came up at a time when we had introduced the ZiG and what is critical is that as a country, we are looking at the ZiG being a unit of trade and as a unit of preserving value."
Political analyst and consultant at the Chitepo School of Ideology, Mr Goodwine Mureriwa, said Government had exhibited its pro-people stance in the statement.
"The Government demonstrated expected sensitivity to the devastating impact of the El-Nino induced drought. Millions of Zimbabweans in both rural and urban areas, especially the traditionally vulnerable like the elderly, the sick, orphans and the physically and mentally challenged need greater assistance so its commendable that Prof Ncube addressed their needs in the budget review statement.
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"The reduction in some taxes and measures to enhance demand for the ZiG are highly welcome. It is now apparent that if all Zimbabweans desist from speculative tendencies and sabotage against our own gold-backed local currency and fight the pervasive corruption we are set for massive economic growth. Through honest hard work we should be ready to utilise the envisaged good rains to enhance self-sufficiency," Mr Mureriwa said.
Another analyst, Mr Tinashe Tiki, said the tax and social welfare measures announced by the Minister were necessary given the devastating drought experienced by the country.
