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NewsDay

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Live updates : Chinamasa presents 2017 budget

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FINANCE minister Patrick Chinamasa will today present his 2017 National Budget, which is unlikely to be above $4 billion due to a shrinking tax base.

We give you live updates of Finance minister Patrick Chinamasa’s presentation of the Zimbabwe National budget for 2017, happening this Thursday afternoon at Parliament in Harare.

As reported by NewsDay on Thursday, the budget is unlikely to be above $4.5 billion due to a shrinking tax base.

Since dollarisation, the country has not had a budget above $4,5 billion, as revenues continue to dwindle.

Civil servants’ salaries and wages continue to chew the biggest chunk of the budget, gobbling 97% of revenue in the first half of the year.

Chinamasa has started his presentation, and according to a National Budget document on zimtreasury.org.zw, here are some of the highlights.

15:47 Concludes by narrating an African story of animals.

15:44 Stresses policy consistency, credibility, coherence and arrears clearance as crucial.

15:44 Zimra clearing agents to at least possess a Diploma.

15:43 Proposing excise duty on paraffin at 40 cents per litre with effect Jan 31 due to abuse.

15:43 Paraffin abused by unscrupulous dealers to blend with diesel.

15:42 On taxing of SMEs proposing to waiver registration tax for SMEs whose turn around does not exceed $240 million

15:40 Development partners funding for health no longer sustainable. 5 cents to be charged for every dollar of airtime and mobile duty (health levy).

15:36 To impose health fund level so that every citizen has access to health.

15:34 Penalties for failure to connect to Zimra fiscal devices undermining Zimra to monitor in real time.

15:33 Luggage wear removed from import general licence.

15:32 Women MPs ululate as Chinamasa removes duty on imports of raw materials for sanitary wear

15:24 Says policies will continue to play a part in eliminating corruption MPs interject.

15:23 $17 million Bond notes disbursed.

15:21 Vocational training centres to be increased in every Province and government to use Zimdef funding for this.

15:19 Empowerment Bank for the youth.

15:19 Residential houses government to continue to provide stands to local authorities and stands for civil servants where they contribute $50 monthly for servicing.

15:19 Need to develop Vic Falls intergrated Park for tourism.

15:19 Need to resuscitate steel industry and Ziscosteel.

15:19 Cabinet decided to dispose of IDC loss making unit to re-industrialise economy.

15:18 S.I 64 companies must take advantage of this protection to retool and recapitalise

15:17 On mines says ZMDC needs recapitalization of its mines under joint ventures and investments in exploration.

15:13 $12,8 million allocated to strengthen e-governance.

15:13$55 000 for CDF for each constituency to be disbursed through Parliament and ZEC allocated $9,8 million and ZHRC $2 million only

15:11 Says on climate change need to enforce legislation on veld fires, planting and building on wetlands.

15:09 Education gets highest vote of $803,7 million while Parliament gets $30 million and MPs are unhappy and interjecting.

15:09 Projected revenue collection of $3,7 ban in 2017.

15:07 Economic recovery process needs conclusion of international processes, good rains, tranquillity, minimum polarization towards 2018 elections.

15:02 1,7% economic growth rate expected in 2017.

14:59 Says challenges are low production, import dependence, liquidity challenges etc resulting in anticipation of 0,6% growth rates .

14:56 Chinamasa Says 2017 budget to be in line with new budget format.

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Overall allocations

  • The 2017 National Budget proposes an allocation of US$1.35 billion towards health, social welfare and education Ministries under the Social Services and Poverty Eradication cluster.
  • Social safety nets have been allocated US$78 million in order to cushion the vulnerable groups of our population in terms of health, education and social welfare programmes.
  •  Given the centrality of agriculture in terms of food security and support to other sectors, an allocation of US$303.2 million is being proposed under this Budget.
  • With regards to the Infrastructure and Utility cluster, the 2017 Budget sets aside US$188 million, which will be complemented by resources from statutory funds, respective state owned enterprises, development partners and loan financing.
  • Estimates of Expenditure and the proposed Vote Appropriations for the 2017 Budget are highlighted in Annexure 7.

5.Prioritised Zim Asset cluster based projects and programmes include those identified under the Interim Poverty Reduction Strategy Paper 3 Excludes Pension benefits of US$477.6 million allocated under Constitutional and Statutory Appropriations.

4.Line Ministries and Departments will, therefore, be required to design implementation of their projects and programmes in line with Zim Asset clusters, to create synergies, necessary for optimising on the little resources available, for the achievement of Zim Asset.

3.Allocations under the 2017 Budget are primarily directed at priority areas,drawing from Zim Asset clusters namely: • Food Security and Nutrition; • Value Addition and Beneficiation; • Infrastructure and Utilities; and • Social Services and Poverty Eradication

2.Constitutional and Statutory Appropriations have been allocated US$673.7 million, resulting in overall Budget Expenditures of US$4.1 billion.

1.The 2017 Budget proposes Vote Appropriations of US$3.4 billion,inclusive of Employment Costs3 of US$2.52 billion, Operations and Maintenance of US$400 million and Capital Expenditures of US$520 million.

14:12 VP Mnangagwa chats to Home Affairs Min Ignatius Chombo as Parliament readies to hear 2017 national budget statement.

14:01 2017 budget seating quagmire-MPs occupy seats as early as 1.30pm for 2.30pm presentation Parly cannot take 270 MPs.

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Updates by Veneranda Langa and Tinotenda Samukange