2022 National Budget Statement highlights

26 Nov, 2021 - 00:11 0 Views
2022 National Budget Statement highlights Prof Ncube

The ManicaPost

Tax Relief Measures

Tax Free Threshold on Personal Income

Higher than projected wage reviews during the course of 2021 by Government and some private sector employers has pushed a number of taxpayers into higher income tax brackets resulting in bracket creep and a higher tax burden.

In order to provide relief to taxpayers and also boost aggregate demand for goods and services, the tax-free threshold will be adjusted from $10 000 to $30 000 and also adjust the tax bands to end at $500 000 above which a marginal tax rate of 40 percent will apply, with effect from 1 January 2022.

Tax-free threshold reviewed on income accruing in foreign currency from US$70 to US$100, with effect from 1 January 2022.

 

Other foreign currency tax bands remain unchanged.

Bonus Tax Free Threshold

The local currency tax-free bonus threshold from $25 000 to $100 000 and the foreign currency tax-free bonus threshold from US$320 to US$700, with effect from 1 November 2021.

Urban Water and Sanitation

Aging infrastructure coupled with increasing population, as well as rural-urban migration have necessitated the need for Government to urgently invest in new water supply sources and sewer infrastructure.

 

This, will, in the interim entail the need to rehabilitate and upgrade the existing water supply and sewer infrastructure in major cities.

 

To this end, the 2022 National Budget conditional grants of $2.1 billion will be availed

Irrigation Development

Support towards the National Accelerated Irrigation Development and Rehabilitation Programme targets irrigation rehabilitation and development, maintenance of communal irrigation schemes and capacitation of A2 farmers.

Accordingly,$1.5 billion was expended during the period January to September 2021 and in 2022 $6 billion was set aside for the National Accelerated Irrigation Programme.

Rural Development

In order to accelerate rural development, the 2022 National Budget has set aside an allocation of $400 million for above amenities including solid waste management, such as flush toilets beginning with schools and health centres.

Government will support the 200ha irrigation development per each district as a way of promoting income generation at district level, as this also supports economic activity at centre/local level.

Mining

Growth in mining is estimated to reach 3.4 percent in 2021.

 

Going forward, the country will continue to leverage its mineral resources in order to achieve the desired mining growth of eight percent in 2022 and in line with the US$12 billion mining industry by 2023.

In order to attain this growth target, the budget has a provision of $3 billion to the Ministry of Mines and Mining Development.
Transport

In 2022, the thrust is to continue to modernise the transport network, with particular focus on completion of on-going projects to ensure it facilitates the attainment of Vision 2030.

 

Therefore, the budget allocates $60.8 billion to the Ministry of Transport and Infrastructural Development.

Roads

On the Emergency Road Repair Programme II, $8 billion was availed.

Urban Mass Transport System

In 2022, the budget caters for the subsidised social protection programme (the Urban Mass Transportation System by the Zimbabwe United Passenger Company) and $3.7 billion has been allocated.

Harmonised Social Cash Transfers

Cash transfers amounting to ZWL$875 million were made to 70 000 beneficiary households in 26 districts through mobile money transfers, targeting food poor and labour constrained households.

In 2022, Government seeks to expand coverage of the Harmonised Social Cash Transfers Programme by an additional 10 districts from the current 26 districts to benefit around 97 000 labour constrained households.

 

Therefore, the 2022 National Budget has set aside $2.2 billion for cash transfers and targeting exercise for effective implementation of the Programme.

Furthermore, around 28 000 vulnerable households will benefit through public works programmes under this allocation.

Elections

The country will be holding harmonised elections in 2023 as enshrined in the Constitution and preparatory works (delimitation, voter registration and inspection) will be undertaken to ensure success of this constitutional requirement.

 

The 2022 National Budget is, therefore, setting aside $7.75 billion for the respective preparatory works.

Additionally, Government is also allocating $3.25 billion for the holding of by-elections for vacant constituencies in 2022.

War Veterans

Government also recognises the need to continuously improve the welfare of veterans of the liberation and efforts are underway to review their monetary and non-monetary benefits.

 

Already, a number of assets in the form of mining claims, farms and tourism assets have been availed to war veterans.

Efforts are also underway to capacitate the companies that have been set up for the veterans to enable them competitively participate in public tenders.

 

Under the Ministry of Defence and War Veterans Affairs, an allocation of $1 billion is being set aside to cater for the welfare of war veterans.

2022 Population and Housing Census

The country is scheduled to undertake the Population and Housing Census in 2022.

 

Most of the preparatory work which includes mapping of enumeration areas which was supposed to start in 2021 was affected by the Covid-19 pandemic.

 

This therefore requires speedy finalisation of key aspects of preparation during the last part of 2021.

The budget set aside $3 billion towards the preparation and conduct of the 2022 Population and Housing Census.

Devolution

As part of ensuring inclusive growth through equitable economic development across all the regions of the country, Government will advance the implementation of the devolution agenda in line with the Constitution.

Notwithstanding the fiscal limitations, resources amounting to $6.3 billion were availed under the programme which were deployed towards implementation of the above cited projects.

 

Share This:

Sponsored Links

We value your opinion! Take a moment to complete our survey

This will close in 20 seconds