Zimbabwe Public Finance Review: Anchoring Macroeconomic Stability Through Fiscal Policy

Publication:
Zimbabwe Public Finance Review: Anchoring Macroeconomic Stability Through Fiscal Policy

dc.contributor.author	World Bank
dc.date.accessioned	2025-03-05T22:09:37Z
dc.date.available	2025-03-05T22:09:37Z
dc.date.issued	2025-03-05
dc.description.abstract	How can Zimbabwe create the necessary fiscal space to absorb quasi-fiscal expenditures, reverse its upward trend in public debt, and support macroeconomic stability? Zimbabwe is faced with an unsustainable and growing stock of public debt. To service this debt, the Reserve Bank of Zimbabwe (RBZ) has historically engaged in quasi-fiscal operations (QFOs) through money creation, leading to high inflation and macroeconomic instability. The Government of Zimbabwe (GoZ) is thus considering options for fiscal consolidation (expenditure rationalization and increased revenue mobilization) to return Zimbabwe to a sustainable fiscal pathway. This can help stabilize the macroeconomic environment by providing an anchor for price and exchange rate stability, bolstering economic growth and job creation. This public finance review (PFR) examines options to create fiscal space and identify policy options that can contribute to a return of Zimbabwe’s fiscal accounts to a prudent trajectory. Chapter 1 contains the macro-fiscal context and developments in Zimbabwe’s real, external fiscal sectors, and considers the impact that monetary and exchange rate policy distortions have had on Zimbabwe’s public finances. Chapter 2 considers trends in, and the composition of, spending and presents options for expenditure rationalization. Chapter 3 considers trends and the composition of revenue collection and presents options for domestic revenue mobilization. Chapter 4 ties this all together to consider how the various policy options in this report will affect the fiscal balance, debt servicing, and the debt-to- gross domestic product (GDP) ratio, and how these policy options can jointly contribute toward a credible medium-term fiscal strategy for Zimbabwe.	en
dc.identifier	http://documents.worldbank.org/curated/en/099022425044013834
dc.identifier.doi	10.1596/42917
dc.identifier.uri	https://hdl.handle.net/10986/42917
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	ECONOMIC GROWTH
dc.subject	FISCAL SPACE
dc.subject	PUBLIC DEBT
dc.subject	MACROECONOMIC STABILITY
dc.subject	FISCAL CONSOLIDATION
dc.title	Zimbabwe Public Finance Review	en
dc.title.subtitle	Anchoring Macroeconomic Stability Through Fiscal Policy	en
dc.type	Report
dspace.entity.type	Publication
okr.date.disclosure	2025-03-05
okr.date.doiregistration	2025-04-14T11:49:51.752747Z
okr.date.lastmodified	2025-03-01T03:04:32Z	en
okr.doctype	Economic & Sector Work::Public Expenditure Review
okr.doctype	Economic & Sector Work
okr.docurl	http://documents.worldbank.org/curated/en/099022425044013834
okr.guid	099022425044013834
okr.identifier.docmid	P500915-25b3508a-2273-424f-965a-eabd14e9accf
okr.identifier.externaldocumentum	34459856
okr.identifier.internaldocumentum	34459856
okr.identifier.report	197511
okr.import.id	6801
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	https://documents.worldbank.org/curated/en/099022425044013834/pdf/P500915-25b3508a-2273-424f-965a-eabd14e9accf.pdf	en
okr.region.administrative	Africa Eastern and Southern (AFE)
okr.region.country	Zimbabwe
okr.topic	Macroeconomics and Economic Growth::Investment and Investment Climate
okr.topic	Finance and Financial Sector Development::Public & Municipal Finance
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unit	EFI-AFR1-MTI-MacroFiscal-1 (EAEM1)