Welcome to the coverage of the 2018 National Budget Presentation. Mr A. Nyamuramba and Ms. T. L. Manyemba will be giving you the updates.
Goodbye for now until next time.
The following is a picture collage of the 2018 National Budget in pictures.
I conclude by commending the full budget and lay on the table the Estimates of Expenditure. The new economic order requires support of labour civic society and the region accompanied by support and good will.
To designate ZIMRA as the legal agents to control and administer border posts until the establishment of a Portal Authority.
Restore order at Beitbridge Boarder posts, extension of operation restore order at Beitbridge Border Post with immediate effect remove touts and beggars.
Mining fees to be reviewed on ground rentals.
Interest on the penalty to companies to be repealed.
Mining communities, review of staff housing allowances for schools.
Exemption of goat and sheep meat from VAT.
Review of VAT with holding rate from 10 percent to 5 percent of the taxable rates.
Suspension of duty on luxury coaches importation extend to 2018.
Relief on manufacture’s in the following sectors, dairy, textile, furniture and luggage ware manufacturers.
Highlights of 2018 Budget allocations;
– 905,5 million to Primary and Secondary Education Ministry
– 497,3 million to Lands, Agriculture and Resettlement Ministry.
– 435,4 million to Home Affairs and Culture Ministry.
– 420,3 million to Security and War Veterans Ministry.
– 408,9 million to Health and Child Care Ministry.
– 57 million to Parliament.
2018 Elections will be held as usual, Budget will provide for the conducting of credible elections.
Commitments were made to pay the 2017 budget bonus to civil servants in 2018 in a staggered form.
Resources will be made available for the research on the master plan for idle water bodies improvement.
Government will put in place an array of measures to ensure ease of doing business which is competitive to the regional practices.
Extractive Sector: 51 percent and 49 percent threshold will not apply to the rest of the extractive sectors of the economy except the diamond and gold sectors. Continue to have a reserved sector for Zimbabweans only exception if the business creates opportunity for employment and transfer skills among other things. Foreign nationals already in the reserved sector sector will continue upon fulfilling stringent measures among them registration and banking of their proceeds with local banks.
Government will attract both domestic and international investment by coming up with investor friendly policies.
Government will double efforts for re-engagement with IMF, ADB and many others.
Zimbabwe desires to get back to the global economy. Zimbabwe will engage USA, EU, UK at highest levels to reopen doors for re-entry into the global economy.
Corruption, His Excellency’s call to decisively deal with corruption. Government will capacitate police and anti-corruption commission and strengthen Judiciary Services to deal with corruption. Establishment of toll free lines to report corrupt activities to the Office of the President and Cabinet.
Local authorities , Government will enforece 70 percent service delivery and 30 percent for employment costs.
Non-strategic parastatals are going to to be closed, commercialise non-strategic parastatals as well as go into joint ventures.
Day to day running of commissions should revert to secretaries, commissioners should be non-executive and part timers.
Costs of democracy: The funding of Provincial and Metropolitan Councils is not sustainable. Political parties in Parliament should discuss and come up with ways to address this issue.
Support for early childhood development programmes. The management of ECDs is beyond government’s capabilities. It is proposed that the pending request to recruit 6000 teachers at ECD level should be shelved and alternatively the parents and communities should carry the burden.
Reduction of the countries foreign diplomatic missions in line with our current economic position.
Removal of first class travel for everyone except for the Presiduim.
Where there is diplomatic presence, government should take advantage of such missions.
Reduction of foreign business trips and reduction of outgoing delegations.
Government will fuel reduction of senior government officials. Government will review personal vehicle issue to one vehicle to Permanent Secretaries, Commissioners, PDs, Directors instead they will be given loans to buy vehicles.
Government will uphold the Cabinet decision to abolish over 300 youth officers posts.
Government will maintain the freeze on non critical staff across the board.
Those civil servants who are being engaged well beyond their retirement ages, from January 2018 retire staff above 65 years.
Removal of duplication of services, everything must fall into line.
Expenditure measures are being proposed: he assured MPs that their welfare matters will be addressed.
Agreed cabinet policy agreements should not be arbitrary reversed.
There is need to reduce the share of employment costs to 70 percent from the current 84 percent.
Need to manage budget deficit at less than 4,5 percent of GDP. Government borrowing to be at 20 percent of previous year’s borrowing.
Horticulture and tourism need to be grown, plug leakages on export receipts. We need to enforce the amnesty on externalised funds, amnesty on cash hoarded at home so that it can be deposited into banks.
There is need to promote domestic savings, improve interest rates on savings and reduce charges on bank uses.
Short to medium solutions are needed, government need to extend electronic payments systems to the rural areas, import cash and reduce tax on plastic financial use.
Government is cognisant of the hardships the Zimbabwean people are facing due to shortages of cash.
Highlighted the need for conducting credible elections in 2018.
Banking sector: It remains stable, due to satisfactory control of the sector, among other things banks have reduced their lending and interest rates.
Inflation outlook prices have now reversed. Government will ensure that appropriate measures are put in place to contain inflation.
The 2018 projected growth is 4,5 percent.
He acknowledged the presence of His Excellency Cde. E.D. Mnangagwa. He pointed out that the 2018 Budget formulated mindful of challenges facing Zimbabwe such as low business and inability to generate foreign currency. High levels of unemployment, cash and foreign currency shortages.
The Minister of Finance and Economic Development has moved for the presentation of the Budget speech which comprises of the full budget statement and the Estimates of Expenditure.
The Minister of Finance and Economic Development, Hon. P. A. Chinamasa has arrived at Parliament Building accompanied by his wife.
His Excellency, the President and Commander in Chief of the Defence Forces, Cde. E.D. Mnangagwa has arrived at the Parliament Building.