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According to the latest treasury bulletin availed to The
Sunday Mail, other notable achievements include cutting the domestic debt,
jettisoning issuance of treasury bills, privatisation of State entities and
accelerating the ease of doing business among other positives.
These gains are expected to position the economy on the
trajectory for growth, despite current challenges that are a result of a
drastic shift from the old way of doing things.
President Emmerson Mnangagwa last week pronounced that
while the economic reform process had brought with it some shocks, the country
was now on the cusp of glory; “as the darkest hour comes before dawn”.
The treasury bulletin noted that Government far exceeded
its target of $78 million to record $443 million surplus in the first quarter.
“The budget balance for the period January to March was a
surplus of $443,1 million, against a target of $78.2 million, indicating a
major shift in the management of central Government finances from deficits to
surpluses,” read part of the bulletin.
“Containing the budget deficit to sustainable levels, which
will also provide scope for managing the debt and inflation outcomes. Since
January 2019, the Government has been running budget surpluses at $102, 4
million in January, $85, 4 million in February and $255, 3 million in March.”
When President Emmerson Mnangagwa’s administration took
office, it was burdened with paying off treasury bills from the previous
administration.
Since January, Treasury has not issued any Bills as it
conforms to prudent practices in managing the economy.
“As a result, since January 2019, neither Treasury Bills
nor the overdraft facility were utilised to finance the budget,” the bulletin
further states.
“The Treasury Bill issuances amounting to $180 million were
for purposes of restructuring previous years’ maturing debt.
“Treasury Bill issuances related to ZAMCO operations have
also been frozen, as announced in the 2019 Budget Statement.”
Zimbabwe’s external and domestic debts stood at US$7,7
billion and US$9, 6 billion respectively and Government is adopting a two
pronged approach that involves reengaging with international creditors while
containing the local obligations.
The bulletin shows that in the first quarter of the year,
“payments amounting to $319 million were expended towards relinquishing
maturing domestic debt.”
A 64,1 percent increase was also recorded in revenue
collection in comparison to the same period in 2018 after the Zimbabwe Revenue
Authority (ZIMRA) improved its capacities and also plugged talk loopholes.
The report noted that the Intermediated Money Transfer Tax
(IMTT), which was introduced amid public outcry last year, has yielded positive
results after it generated monthly average revenue of $95 million against a
target of $50 million.
While inflation has continued to be a thorn in the flesh,
since the start of the year, authorities expect the rate to go down during the
latter part of this year.
Between January and March, Government was able to contain
expenditure to $1,5 billion, against planned spending of $1,7 billion.
The report said major expenditures were on employment costs
at $1 billion, operations and maintenance $185,6 million, interest $93,3
million and capital projects $175 million.
In support of social service delivery, $62.5 million was
disbursed towards education, health as well as other social protection
programmes.
Speaking after witnessing the signing ceremony of an
investment agreement for a platinum concession between Government and Bravura
Consortium on Friday, President Mnangagwa said Zimbabwe’s economic prosperity
was within touching distance.
“I believe those who have the perception know that that
darkest hour for Zimbabwe is before dawn.
“Dawn is just a few kilometres away. Prosperity for this
country is there. All what we need is unity and peace among our people. We must
march forward together.”
He further warned that those who did not have faith in the
impending economic boom will “fall by the wayside.” Sunday Mail
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