Mthuli Ncube to present supplementary budget for 2022 amid runaway inflation and Zim-dollar collapse

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By Xinhua

Zimbabwean Finance Minister Mthuli Ncube is due to present the 2022 supplementary budget Thursday, amid skyrocketing inflation that has since eroded this year’s national budget.

In addition to the supplementary budget, the minister will also present the traditional 2022 mid-term fiscal policy statement.

Ncube presented the 927.3 billion Zimbabwean dollars national budget for 2022 in November last year.

“The supplementary budget is sure to require a supplementary or additional Appropriation Bill and likely a Finance Bill,” parliamentary watchdog Veritas Zimbabwe, said Monday.

This is the first time that Ncube will present a supplementary budget since he was appointed Finance Minister by President Emmerson Mnangagwa in 2018.

Zimbabwe has witnessed a sharp rise in inflation which has led to the depreciation of the Zimbabwean dollar. The Russia-Ukraine conflict has also exacerbated the economic situation by fuelling fuel and food prices.

Zimbabwe’s inflation has increased from 60.7 percent in December 2021 to 191 percent in June 2022.

In recent weeks, the government has introduced various measures including hiking the bank policy rate from 80 percent to 200 percent per annum as well as introducing gold coins to tame rising inflation.

Amid a bleak economic outlook, Ncube has since hinted that he will revise downwards Zimbabwe’s growth forecast for 2022 when he presents the fiscal policy statement Thursday, from the initial 5.5 percent.