By Davison Vandira
Economic analysts have commended government’s commitment to infrastructure development and strengthening of the country’s macroeconomic stability as spelt out by the 2022 Budget Strategic Paper presented this Tuesday.
There are seven priority areas singled out by the fiscal authorities as the main economic arteries in 2022, including development and supporting of productive value chains especially in agriculture and the manufacturing sector as well as optimising value in natural resources through beneficiation and value addition.
It is the smooth transition and consistency of macro-economic policies that have charmed economic analysts, describing the 2022 budget focus areas as critical determinants to the country’s economic rebound prospects.
Economic Analyst Kudakwashe Mugova said, “The focus areas by government will enable the economy to grow above set targets of 5% for the period under the NDS1. The growth will be anchored by mining but most importantly the manufacturing sector which represents efforts by the government in support value addition on our natural resources.”
“The anticipated improvement in the revenue to GDP ratio is import because the government will be able to raise more funds to fund infrastructure development such as health, education, roads etc. That anchors the growth and development of the economy,” says economist, Titus Mukove.
According to the World Bank, revenues that are above 15% of the GDP are a key ingredient for economic growth and ultimately poverty reduction.