Finance minister Patrick Chinamasa presented a US$4 billion budget yesterday and pledged to cut government expenditure further next year after a US$520 million overrun in 2016. Below are highlights:
- US$4,1 billion budget unveiled
- Economy to grow by 1,7% in 2017
- Revenue of US$2,876 billion collected between January and October 2016 against a target of US$3,158 billion, a negative variance of 9,8%
- Cumulative expenditure for January to October 2016 amounts to US$3,84 billion against a target of 3,32 billion, representing US$520 million overspend.
- Employment costs to gobble 91% of revenue
- Exports decline by 6,9% to US$3,365 billion
- Import bill stands at US$5,35 billion against exports of US$3,365billion
- A total of US$17 million of bond notes injected into the banking system
- Freeze in prices and fees charged by public entities
- Five cents health levy for every dollar spent on airtime and data
- Resuscitation of Ziscosteel on the cards
- Agriculture, which experienced a 3,7% decline in 2016, expected to grow by 12% in 2017
- Mining sector seen growing by 0,9% in 2017
- Manufacturing sector seen growing by 0,3%
- 15% platinum tax reprieve extended to 2017
- Growth rate of between 0,3 to 3% anticipated in other sectors in 2017
- Capital inflows of US$692,4 million expected in 2016 against US$1,2 billion in 2015
- Formal remittances fall to US$780 million in 2016 from US$935 million in 2015
- Stock market turnover between January and October 2016 slumps by 29% to US$144,46 million.
- Primary and secondary education ministry gets highest vote of US$800,3 million followed by Home Affairs allocated US$364 million
- Defence ministry allocated US$340,5 million while health and agriculture sectors receive US$208 million and US$244 million respectively.
- Wheat flour, luggage ware and school uniforms removed from the open import licence with effect from January 1 2017
- Special wine duty regime announced.
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