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Zimbabwe: The 2006 National Budget Statement


1 December 2005

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  1. Mr. Speaker Sir, I move that leave be granted to bring in a Bill to make provisions in connection with revenues and expenditures of the Republic of Zimbabwe and to make provision for matters ancillary and incidental to this purpose.

  1. Mr. Speaker Sir, the 2006 National Budget is being presented against a background of high expectations of resuscitating the economic fortunes of the country. This can only be realised by taking bold policy measures to address the challenges facing the economy.

  2. We need to be committed and resolute in implementing policies and programmes, which we agree to. It is also necessary that we jolt our people and all economic players, including Government agencies, to realise that we cannot continue with a business as usual approach.

  3. Our trade and investment initiatives need to go beyond rhetoric and lay the foundation for the urgent implementation of agreed mutually beneficial trade and investment programmes. This requires that Government speaks with one voice and walk the talk.

  4. Mr. Speaker Sir, vast opportunities exist across all the sectors of the economy especially in agriculture, manufacturing, mining and tourism for individuals to undertake honest business activities that help to create wealth.

  5. Capacity utilisation in our industries has to increase substantially for us to generate jobs. Parastatals have to start playing their pivotal role in the economy. The public sector has also to deliver its services efficiently and effectively, while at the same time Government expenditures have to be restructured to prioritise investment in capital and infrastructure. The transformation of the economy requires that we diversify and focus on value addition and import substitution.

  6. The 2006 Budget, therefore, has to set out the basis for economic take-off, by creating the necessary enabling macro-economic environment for promoting growth and development.

  7. In this regard, Mr. Speaker Sir, the demands on the 2006 Budget have been enormous and I have had to prioritise Government expenditures on the basis of the critical requirements of the economy and the available resource envelope.

  8. Mr. Speaker Sir, during the formulation of this National Budget, I had the opportunity to consult most of the stakeholders throughout the country. In this regard, ten provincial meetings were held with various associations, captains of industry, labour, Members of Parliament, line Ministries and Government Departments, traditional leaders and civic society to mention but a few.

  9. Significant and informative contributions were made during this consultation process. I would therefore, like to thank all stakeholders who contributed to the formulation of the 2006 Budget. Allow me also to take this opportunity to thank the Minister of Economic Development, Hon. Rugare Gumbo and his staff for their invaluable contribution to the formulation of this Budget.

  10. Mr. Speaker Sir, allow me to inform the August House that Government is finalising the review and updating of the country’s long-term economic development Vision, to take account of recent economic challenges and changes in the economic environment. This revised Vision, will also incorporate strategies to realise the objectives and targets of the Millennium Development Goals and will guide the formulation of our 2007-2011 Five Year National Development Plan.

  11. The Ministry of Economic Development is coordinating, the formulation of the 2007- 2011 Five Year National Development Plan, which will involve the full participation of all stakeholders, including grassroots levels. Active participation of stakeholders in the process will be critical.

  12. This Plan will anchor our economic policies after 2006, and become the successor to the consistent Economic Policy Framework we have been implementing from last year, as enunciated in “Zimbabwe: Towards Sustained Economic Growth – Macro-Economic Framework 2005-2006.”

  13. Mr. Speaker Sir, before I present the 2006 Budget, allow me to share with the House, the Global and Regional Economic Environment under which we have formulated this Budget, as well as this year’s Economic Performance and Prospects for 2006.

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