RBZ Governor Advocates for Fiscal Prudence in Zimbabwe’s 2024 Budget

The Governor of the Reserve Bank of Zimbabwe (RBZ), John Mangudya, emphasized the need for the upcoming 2024 budget to be in line with the current fiscal and monetary policies during a pre-budget parliamentary seminar. Finance Minister Mthuli Ncube is set to present the budget, which is expected to tackle challenges such as slowing economic growth, geopolitical tensions, climate-related disruptions, and ongoing inflation.

Mangudya pointed out the ongoing issue of increasing global inflation, primarily caused by supply chain disruptions that began in 2021. As a result, borrowing costs have risen, and Zimbabwe’s annual inflation rate is now at 17.8%. The governor predicts that global inflation will continue to climb, reaching 6.9% in 2023 and 5.8% in 2024.

To achieve macroeconomic stability and foster the formalization of the economy through digitization, Mangudya proposed several initiatives. These include eliminating taxes on point-of-sale transactions, promoting local currency transactions in public dealings, utilizing the uptick in diaspora remittances and private sector loans, streamlining the tax system, and enhancing communication regarding policies to stabilize inflation and manage exchange rate expectations.

Despite a 9.6% decline in export revenues, foreign currency inflows have increased by 2.5%. The governor’s appeal for fiscal responsibility and a stringent monetary policy for 2024 reflects the government’s strategy to address both domestic and international economic challenges.

This article was generated with the support of AI and reviewed by an editor.