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NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

2013 Budget:What do you want done?

News
As the economy has remained largely informal, small-to-medium enterprises continue to play a big role in the recovery and growth of the country’s economy.

Small and medium enterprises

AS the economy has remained largely informal, small-to-medium enterprises (SMEs) continue to play a critical role in the recovery, growth and development of the country’s economy.

Official figures show that 47% of the economically-active population in the urban areas derives income from self-employment.

SMEs have become a formidable driver of economic activities, employment generation and a major source of livelihood for the majority of our people.

However, tax receipt from the sector is very small relative to economic activities being undertaken.

Is the informal sector getting away with not paying tax?

 

Water, sanitation development

MOST local authorities are struggling to provide adequate water and sanitation services to residents on account of infrastructure that has surpassed its lifespan.

In rural areas, the challenge relates to increased number of non-functional boreholes and water points.

The perennial water supply challenges for Bulawayo and Harare, are putting a premium on the cities’ future growth and development. The construction of Kunzvi Dam and the Matabeleland Zambezi Water Project remain a pipe dream. Residents in urban areas have had to resort to boreholes and unprotected wells for drinking water.

Is there a solution in sight to this issue?

 

Women and empowerment

WOMEN and youths constitute a huge percentage of the general population (women–52%, youths–53%). The government has created the Indigenisation and Economic Empowerment Fund, the Youth Development Fund, the Mining Industry Loan Fund, the Women Development Fund and the SME Fund.

In the 2012 National Budget, the government in collaboration with a local bank, said it was making resources available to the unemployed. How many of you have accessed this money?

The country’s pace for employment generation has remained low despite it being much more naturally endowed than countries such as Singapore, Mauritius, South Korea and Japan, which command much higher per capita incomes,employment and welfare.

 

Industry

MOST corporates that used to employ thousands of people in the past have in recent times struggled largely as a result of the market-wide liquidity constraints.

Most of successful companies in the post-dollarisation era have been anchored on commercial activities of retailing, liquor undertaking, SMEs and vending.

Foreign lines of credit have remained elusive largely as a result of the country being viewed as a high risk capital destination.

The setting up of the Distressed and Marginalised Areas Fund to a limited extent succeeded in alleviating the challenges of a few companies. An estimated $2 billion is required to revive industry alone.

What options does the finance minister have to raise capital for industry?

 

Housing

THE national housing waiting list has exceeded 1 million and keeps growing.  The few serviced stands in urban areas and growth points are priced beyond the reach of many whose incomes are way below the Consumer Council of Zimbabwe poverty datum line of $550 for a family of six.

There has been very limited housing development throughout the cities and towns. What options does Biti have to start to address the problems holistically.

 

Pay As You Earn

THE government says it supports a progressive income tax system underpinned by a tax principle of equity and fairness whereby low income earners bear a lower tax burden.

In support of this principle, the tax free-threshold was gradually adjusted from$150 with effect from 1 January 2010, to$225 in 2011 and $250 per month beginning January this year. There is a feeling that the minister should raise the non-taxable income to $500 though this will mean less revenue for central government.

Zimbabwe’s income tax regime is generally perceived as unattractive by many skilled and talented locals that have emigrated seeking better employment prospects.

Please help minister Biti to solve this big issue. Workers want more money in the pockets while government requires tax revenue to run day to day activities.

What can he do?

 

Energy

POWER outages have become an everyday headache for all households and companies. Zimbabweans have been forced to invest generators solar panels and gas stoves to stave off challenges caused by electricity shortages..

As a result, the cost of living and that of doing business for companies has remained high. With the economy expected to continue on a growth trajectory, power remains a critical enabler. By government’s admission there has not been any new investment in this sector for almost three decades hence the need to quickly put a solid strategy together.

What could be quickest way out of this quagmire?

 

Education

ZIMBABWE remains highly ranked in literacy rates in the region. There has been significant progress in improving textbook supply and infrastructure rehabilitation.

However, accommodation at tertiary institutions remains a challenge leaving state university students at the mercy of rent-seeking landlords.

In the previous Budgets, the government has made an undertaking to support university students with loans and grants in order for them to meet their educational and upkeep requirements. This has failed to materialise as a result of depressed revenue inflows.

The underfunded government continues to support vulnerable children access education through the basic education assistance module piling more pressure on the fiscus.

Are the current measures enough to safeguard high standards in our educational system?

 

Lower denomination coins

SINCE the adoption of the multi-currency system in 2009, the shortage of foreign currency coins has been a challenge to the transacting public. Efforts to import coins from South Africa have failed to yield results resulting in the repatriation of millions worth of coins as banks failed to agree on the exchange rate.

The limited supply of smaller denominations has resulted in untold inconveniences to the public.

Has the public given up on the change issue?

 

Constituency Development Fund

INTRODUCED in 2010 the Constituency Development Fund has been a bone of contention between members of Parliament and their constituencies. While other MPs made meaningful use of the funds some could not account for the funds.

Should this fund be kept in place?

 

Corruption at border posts

IN his last Budget statement, Biti acknowledged the existence of high levels of corruption. Incidences of corruption that have led to revenue leakages include bribery of customs officials, false and under-declarations, abuse of certificates of origin, use of undesignated entry or exit points and abuse of business partnership numbers and travellers’ rebates.

How do we stop the haemorrhaging?

 

  • Please tell Biti what you want him to do in the upcoming budget. Send your views to [email protected]. We will strive to publish as many of your views as possible.