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Some medical practitioners have said the supplementary budget allocation to the health sector was inadequate to fund critical needs in the sector.
Finance and Economic Development minister Mthuli Ncube announced a <a href="https://news.pindula.co.zw/2022/07/28/2022-mid-term-budget-review-highlights/">supplementary budget</a> on the 28th of July on the back of resurfacing macro-economic challenges. In his supplementary budget, Ncube allocated $62 billion more, adding to the original $177 billion for 2022.
<a href="https://www.newsday.co.zw/2022/08/ncube-budget-too-little-to-revive-ailing-health-sector/">NewsDay Zimbabwe</a> quotes Community Working Group on Health (CWGH) executive director Itai Rusike as saying:
<blockquote>
Unfortunately the supplementary budget is still grossly inadequate to fund the critical needs of our health sector as it has been crafted in the context of chronic inflation.
The supplementary budget is coming at a time when the economy is mired in chronic high inflation which makes budgeting a very complicated matter. The risk is that the supplementary budget will soon be overtaken by inflationary developments rendering it inadequate.
</blockquote>
Zimbabwe Senior Hospital Doctors Association President Shingai Nyaguse said the allocated funds do not have a significant impact considering that many hospitals are carrying “significant historical debts.” 
Medical and Dental Private Practitioners of Zimbabwe president Johannes Marisa echoed the sentiments above adding that the health sector demands more resources than what the government is currently allocating considering that the sector was ravaged by the COVID-19 pandemic.
<h2><a href="https://news.pindula.co.zw/">Pindula News</a></h2>

Pindula News

Doctors Say Supplementary Budget Is Inadequate To Fund Critical Needs In Health Sector

Finance and Economic Development Minister, Professor Mthuli Ncube is pushing for the People’s Own Savings Bank (POSB) to be exempted from paying taxes. 
The state-owned financial institution’s predecessor, the Post Office Savings Bank, had an income tax exemption status.
In the 2022 Mid-term Budget Review issued recently, Ncube also said the government had suspended an export tax on exports of un-beneficiated platinum. Reads part of the 2022 Mid-term Budget Review document seen by Pindula News:
<blockquote>
<h2>Tax Exemption for POSB</h2>
Mr. Speaker Sir, Honorable Members will recall that the Post Office Savings Bank was granted income tax exemption status 
in 1997, in view of its role to include the unbanked communities and also encourage savings.
I, therefore, propose to extend the tax exemption to the People’s Own Savings Bank, which is a successor to the Post Office Savings Bank.
</blockquote>
Ncube also announced the suspension of export tax on un-beneficiated platinum. He said:
<blockquote>
<h2>Export Tax on Un-Beneficiated Platinum</h2>
In consideration of the work in progress to establish a platinum beneficiation plant, Government suspended export tax on exports of matte. 
</blockquote>
He proposed to align this policy decision to the Value Added Tax Act, with effect from 1 January 2022.
<h2><a href="https://news.pindula.co.zw/">Pindula News</a></h2>

Finance Minister Mthuli Ncube Pushes For Tax Exemption For POSB

<a href="https://www.pindula.co.zw/Nelson_Chamisa">Nelson Chamisa</a> who leads the opposition <a href="https://www.pindula.co.zw/Citizens%27_Coalition_for_Change">Citizens Coalition for Change (CCC)</a> has proposed a number of measures which he said could stabilise the economy. The measures were issued in response to the <a href="https://news.pindula.co.zw/2022/07/28/2022-mid-term-budget-review-highlights/">2022 Mid-term Budget Review</a> that was recently announced by Finance Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> which he said failed to address pertinent issues. Pindula News presents an excerpt from Chamisa’s Twitter thread:
<blockquote>
<h2>The following must be done immediately: </h2>
a) Dollarisation which will immediately eliminate distortions, forward pricing and multiple pricing; 
b) Restoration of the US$540 as a starting salary;
c) Holistic tax reform. Reduce the tax burden on citizens and the business in general. As part of the tax reforms, we will remove the 2% tax and streamline taxes; d)Remove distortions esp in the agricultural sector and construction sectors which has created a casino economy
e) The elimination of the Currency Auction and reforming the RBZ through limiting the power of the central bank. Separating the roles of central banking and financial services supervision.
f) Reforming the budgetary process, so that the budget comes from parliament and not from ministry of Finance. The budget must come from the Citizens -a Citizens-centered budget.
g) Radically dealing with the corruption pandemic and instituting special mechanisms to eliminate and punish the corrupt.
h) Holding credible, free and fair elections preceded by a comprehensive pact on electoral reforms.
i) Only a leadership change will rescue our beautiful country and in no time turn and transform this Zimbabwe from ruins to greatness. We are new leaders. #RegisterToVoteZW
</blockquote>
<h2><a href="https://news.pindula.co.zw/">Pindula News</a></h2>

Chamisa's Proposed Measures To Stabilise The Economy

CCC leader Nelson Chamisa says the mid-term budget review presented last week by the Minister of Finance and Economic Development, Mthuli Ncube, shows that the country has a serious leadership crisis.
Posting on Twitter, Chamisa outlined some of the measures that the government should implement to alleviate the citizens’ suffering.
The measures include dollarisation, restoration of civil servants’ pre-October 2018 US$540 salaries and the elimination of the RBZ forex auction, among other things. <a href="https://twitter.com/nelsonchamisa/status/1554708289446871040">Wrote Chamisa</a>:
<blockquote>
1/12 The recent MID TERM BUDGET review confirms that Zimbabwe is in a serious leadership crisis and citizens are exposed to extreme poverty and suffering. I say this for the following reasons:
2/12 At a time when inflation has reached 257% in July and people in extreme poverty are 7.9 million (49%), the budget disbursements to social are extremely low, e.g., the ministry of health has been given 27% of the budget by June instead of a min of 50%.
3/12 When the consumer basket for a family of 5 has topped ZWL$140K, the government raises the salary of the lowest paid civil servants to $35K (excluding the US$175) and raises the tax-free threshold to $50K, both of which are far below the consumer basket &amp; poverty datum line;
4/12 There is just unrestrained indiscipline in govt upon rampant galloping corruption. The condonation of ZWL$107 billion for the 2020 &amp; 2019 fiscal years is testimony to this. The govt has created distortions in the foreign currency markets &amp; now gold coins, the havens for corruption.
5/12 We face a major economic collapse and prospects of the bleakest Christmas season this year. USD: RTGS is now at 1:approx 800. The leadership failure is dramatic, gigantic and encyclopedic.
6/12 The following must be done immediately: a)Dollarisation which will immediately eliminate distortions, forward pricing and multiple pricing; b)Restoration of the US$540 as a starting salary;
7/12 c)Holistic tax reform. Reduce the tax burden on citizens and the business in general. As part of the tax reforms, we will remove the 2% tax and streamline taxes; d)Remove distortions esp in the agricultural sector and construction sectors which have created a casino economy.
8/12 e)The elimination of the Currency Auction and reforming the RBZ through limiting the power of the central bank. Separating the roles of central banking and financial services supervision.
9/12 f)Reforming the budgetary process so that the budget comes from parliament and not from the Ministry of Finance. The budget must come from the Citizens -a Citizens-centered budget.
10/12 g)Radically dealing with the corruption pandemic and instituting special mechanisms to eliminate and punish the corrupt.
11/12 h)Holding credible, free and fair elections preceded by a comprehensive pact on electoral reforms.
12/12 i) Only a leadership change will rescue our beautiful country and in no time turn and transform this Zimbabwe from ruins to greatness. We are new leaders.
</blockquote>

Chamisa Comments On Mid-term Budget Review [Full Thread]

Finance and Economic Development Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> on Thursday proposed to review the tax-free threshold on local currency remuneration from the current $25 000 to $50 000 per month.
The Consumer Council of Zimbabwe (CCZ) had proposed that a tax-free threshold of over $100 000 would be appropriate considering that consumers are battling serious inflationary pressures.
Ahead of the announcement, Rosemary Mpofu, an executive director at the Consumer Council of Zimbabwe (CCZ) told the Standard:
<blockquote>
We hope that there will be a review of tax-free thresholds by wider margins. An amount in excess of $100 000 or more will do because the $25 000, when it was announced, would buy much more commodities than it can by today. They must take into account low income and consumer buying power.
</blockquote>
In his presentation, Ncube raised the tax-free threshold to $300 000 or US$1 200 per annum for remuneration earned in local and foreign currency, respectively, with effect from 1 January 2022.
He proposed to review the tax-free threshold on local currency remuneration from $300 000 to $600 000 per annum and also adjust the tax bands to end at $12 million from the current $6 000 000 per annum, above which tax will be levied at a rate of 40 per cent, with effect from 1 August 2022. 
Ncube’s proposed $50 000 free tax threshold, which is equivalent to about US$50 at black market rates is likely to further plummet considering continued inflationary pressures that continue to affect the economy.
These shocks have dislocated the income tax regime, plunging millions into abject poverty, according to the Confederation of Zimbabwe Industries (CZI).
Former finance minister and Harare East legislator Tendai Biti said Ncube’s measures <a href="https://news.pindula.co.zw/2022/07/28/2022-mid-term-budget-review-a-dogs-breakfast-biti/">had failed to address Zimbabwe’s problems.</a>
Ncube revised the civil service allocation for employment costs from $492,8 billion to $832,8 billion.
<h2><a href="https://news.pindula.co.zw/">Pindula News</a></h2>

Finance Minister Ignores Calls By CCZ To Review Tax-free Thresholds By "Wider Margins"

Finance and Economic Development Minister, Mthuli Ncube, on Friday, revised 2022 gross domestic product (GDP) growth targets to 4.6% from 5.5%.
Presenting the 2022 mid-term economic review statement and supplementary budget, Ncube said the downward revision of the growth targets arose from supply chain disruptions globally, a volatile currency and high inflation and low agricultural output. He said:
<blockquote>
Economic performance during the first half of 2022 reaffirms the positive growth trajectory as projected in the 2022 national budget.
GDP growth in 2022 is, however, now projected to slow down to 4.6% from the 5.5% initially projected.
The downward revision is mainly arising from a reduced output from the 2021/22 agricultural season, compounded by continued depreciation of the local currency and rising inflation.
The impact of geopolitical developments is also weighing down on the growth potential of the economy.
</blockquote>
Ncube also revised downwards growth projections for the manufacturing sector to 3.6% from 5.5%. He said:
<blockquote>
Despite the increase in manufacturing capacity utilisation to 56.5% from 47% in 2021 and increased availability of domestically produced goods in the supermarkets, growth of the sector is now expected to slow down to 3.6% in 2022 compared to an initial projection of 5.5%.
The downgrade is mainly due to the high cost of production, attributable to rising in prices of imported raw materials and a poor agricultural season.
</blockquote>
Ncube said the mining sector was expected to grow at 9.5% in 2022 up from the initially projected 8% following increased output in gold, platinum group metals, chrome, nickel, diamonds and coal.
More: <a href="https://www.theindependent.co.zw/2022/07/29/growth-target-cut-to-46/">Zimbabwe Independent</a>

Mthuli Ncube Cuts Growth Target To 4.6%

Former Finance Minister Tendai Biti says Treasury boss Mthuli Ncube’s 2022 mid-term review and budget statement failed to address fundamental challenges bedevilling the economy.
Posting on Twitter, Biti, who is CCC deputy president and Member of Parliament for Harare East, said that the fact that broad money grew by 245% by May 2022 shows that the government is failing to live within its means and is resorting to money printing. Biti wrote:
<blockquote>
The Minister of Finance has presented his 2022 mid-term review &amp; budget statement. It was painful to indulge in an hour of a pointless, tired monologue. An absolute damp squib.
A huge opportunity was missed to address fundamental disequilibrium in the economy centred around 7 key issues that are 1) hyperinflation 2) exchange rate collapse 3) collapse in public sector wages 4) collapse of the social sector 5) low output 6) deficit financing &amp; the national debt 7) tax reform.
Sadly the government missed a glorious opportunity of addressing key issues. Failing to address the key challenges of the day was a cowardly criminal omission that in any event has been the hallmark of Mthuli’s tenure.
To compound matters, Mthuli then proceeded to make shocking announcements on a supplementary budget &amp; some tax increases.
The 2022 Budget was a ZWL$850 billion budget, but a ZWL$1.9 trillion budget is now being proposed.
Effectively Mthuli is proposing a brand new 2022 budget of 120% more than the original budget. This is sheer insanity driven by money creation &amp; an overzealous fiscal policy.
They are failing to live within their means &amp; are now resorting to money printing. A fact confirmed by Mthuli’s admission that broad money grew by 245% by May 2022.
That domestic debt is now ZWL$1.3 trillion is further proof of the existence of a profligate irresponsible regime.
Collapsed public sector wages needed to be dealt with decisively &amp; anything short of a US$ wage won’t work.
The proposed increase of the tax-free threshold to ZWL$600 000 when the exchange rate is now above 1:1000 is an insult.
Perhaps most shocking are Mthuli’s tax measures which he was too embarrassed to read out. The cruellest is the increase to 30% of withholding tax on cross-border traders without a tax clearance certificate.
This will hurt 60% of the population in the informal economy. The reduction of the Value Added Tax threshold from US$60000 to US$40000 will also hit hard the informal sector.
Big business is not spared. Corporates are now required to prepare two sets of accounts, one for US$ and another for ZWL$ transactions. This is a costly exercise confirming that we have become a Banana Republic.
In short, this Review was a complete disaster. It betrayed the absence of a theoretical philosophical framework of its authors. It entrenched looting and arbitrage whilst unleashing cruel revenue measures. What a dog’s breakfast!
</blockquote>

2022 Mid-term Budget Review A 'Dog's Breakfast' - Biti

Finance and Economic Development Minister Mthuli Ncube on Thursday presented the 2022 Mid-Term Budget and Economic Review in Parliament. Here are the highlights:
<ul>
<li>Reserve money stock has increased to ZW$33.6 billion as of 30th June 2022, largely due to growth in statutory reserves in line with the thrust of tightening monetary policy.</li>
<li>The annual growth in broad money was largely driven by increases of 316.9% and 286% in credit to the private sector and net claims on Government, respectively.</li>
<li>Zimbabwe’s balance of payments remains favourable with a current surplus of US$387.1 million having been registered during the first half of 2022.</li>
<li>The gold coins are tradable, highly liquid and can be used as collateral security.</li>
<li>Merchandise exports and imports increased by 33% and 15% to US$3 516.5 million and US$3 746.8 million, respectively, during the first half of 2022, compared to the same period in 2021.</li>
<li>Exports are expected to reach US$7.3 billion, spurred by increases in mineral receipts benefitting from the mineral commodity price boom, as well as increases in agriculture and manufactured exports.</li>
<li>2022 National Budget was premised on revenue collections of ZWL$850.8 billion (16.8% of GDP), expenditures of ZWL$968.3 billion and a target budget deficit of ZWL$76.5 billion (1.5% of GDP). Unaudited outturn during the first half indicates revenue collections of ZWL$506.6 billion, against expenditures of ZWL$534.5 billion. This has resulted in a budget deficit of ZWL$27.9 billion, against a target deficit of ZWL$45 billion.</li>
<li>As at end of June 2022, public and publicly guaranteed debt stood at ZWL$1.3 trillion and US$13.2 billion, comprised of domestic and external debt, respectively.</li>
<li>Budget Transparency Performance, the country is doing well in terms of budget transparency and is now ranked 3 in Africa, after South Africa and Benin. Globally, the country is ranked 41 out of 120 countries according to the International Budget Partnership (IBP) latest Report.</li>
<li>Revenue collections to year-end are now projected at ZW$1.7 trillion while expenditures are now estimated at ZWL$1.9 trillion. This is against the approved Budget of ZWL$968.3 billion, entailing additional spending of ZWL$929 billion.</li>
<li>The bulk of the Supplementary Budget (53%) is going towards employment costs to cushion public servants against the increasing cost of living. The balance of additional resources are going towards meeting Government consumables (18%),capital projects (19%) &amp; social benefits (7%).</li>
<li>Tax-Free Threshold was increased to ZW$300,000 or USD1,200 per annum for remuneration earned in local and foreign currency, respectively, with effect from 1 January 2022.</li>
<li>Tax Relief Measures, Threshold on local currency remuneration from ZW$300,000 to ZW$600,000 per annum and also adjust the tax bands to end at ZW$12 million from the current ZW$6,000,000 per annum, above which tax is levied at a rate of 40 percent, with effect from 1 August 2022.</li>
<li>Bonus Tax Free Threshold: I also propose to review the local currency tax-free bonus threshold from ZW$100,000 to ZW$500,000 with effect from 1 November 2022.</li>
</ul>

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