2019 National Budget Presentation – Thursday 22 November 2018 Parliament Building

The Speaker of the National Assembly, Hon. Adv. J. F. Mudenda has suspended the Business of the House until 14:45 hrs when the Minister of Finance and Economic Development Hon. Prof. M. Ncube will deliver the 2019 National Budget.

Administrator November 22, 20185:19 pm

Thank you for following us until we meet again next time. Good evening and good bye.

Administrator November 22, 20185:18 pm

The Minister has now laid the 2019 National Budget Statement and Expenditure Estimates on the table marking the official ending of the Budget Presentation.

Administrator November 22, 20185:03 pm

Withholding tax on contracts

The Minister propose to exempt payments to non resident individuals from the 10% withholding tax on contracts since non residents persons are not compelled to file returns.
Administrator November 22, 20184:59 pm

Export tax on Raw Hides

The tax on exportation of raw hides has been exempted with effect from 1 January 2019. The same exemption has been extended to sanitary ware.
Administrator November 22, 20184:56 pm

Tax Relief Measures

Tax free threshold has been increased from US$300 to US$350 with wider tax bands ranging from $351 to $20 000 above which income is taxed as the highest marginal rate of 45 percent down from 50 percent.
Administrator November 22, 20184:54 pm

Excise Duty on Fuel

The country’s fuel has become relatively cheaper compared to prices obtaining in the region. To that end the Minister propose that excise duty be increased by 7 cents per litre on diesel and paraffin and 6,5 cents per litre on petrol with effect from 1 December 2018
Administrator November 22, 20184:50 pm

Excise Duty on Cigarettes will go up to $25 per 1000 sticks with effect from 1 December 2018.

Administrator November 22, 20184:47 pm

In order to ensure availability of critical drugs, Government will continue to prioritise allocation of foreign currency for purchase of raw materials.

Administrator November 22, 20184:45 pm

Baking Industry

The Minister propose to introduce duty free importation of raw materials under a manufacturers rebate, with effect from 1 January 2019. This is in order to reduce cost of production, thereby minimising price escalation, particularly on bread – a basic household commodity.
Administrator November 22, 20184:41 pm

Voice and accountability

The 2019 Budget prioritises voice and accountability as embodied in the Legislature as a strong driver for Economic Transformation, for strong sustained and shared growth.
In the course of implementation of reforms, Governments rely on Oversight by its citizenry through their elected representatives. On account of the foregoing the Minister propose to allocated US$89.1 million under Parliament.
Administrator November 22, 20184:32 pm

Tourism

Removal of visa requirements is key to improving this important industry which has continued to grow annually.
Administrator November 22, 20184:25 pm

Mining

For improved performance the TSP and this budget proposes the following policies inter alia
– Review surrender requirements to ensure continued production across all key minerals
– automated mining cadastre information system
– resuscitate closed and opening of new mines with potential and
– plugging leakages in the marketing of gold including implementation of a robust monitoring framework.
Administrator November 22, 20184:21 pm

Natural Resource Management

In order to attain economic transformation, it is critical that Government manages exploitation of the country’s mineral and natural resources in a sustainable and beneficial manner.
Administrator November 22, 20184:20 pm

Social Protection

The reform programme necessitates that Government give attention to social safety nets for vulnerable members of society.
Administrator November 22, 20184:17 pm

Human Capital

The Education Sector Strategy Plan, is in support of SDG No. 4 and aspiration of the Paris Declaration on Education which targets an allocation of 20 percent of the National Budget, inform the 2019 Budget proposed allocation of US$1,51 billion.
Administrator November 22, 20184:14 pm

Devolution

The 2019 National Budget seeks to operationalise support to Provinces on the basis of Section 264 of the Constitution pertaining to provision of 5% of Government resources to Provincial Councils. An estimated US$310 million in fiscal transfers is ear marked for support to Provincial Councils in 2019.
Administrator November 22, 20184:10 pm

The following resources will be allocated to the following ministries

– Energy and Power Development US$16 million
– Transport and Infrastructural Development US$399 million and
– ICT and Cyber Security US$17,9 million
Administrator November 22, 20184:08 pm

Infrastructure Development

The 2019 Budget seeks to address infrastructure gaps and give support to key enablers for transformation which are critical for reducing cost of doing business and supportive of industry and commerce.
Administrator November 22, 20184:05 pm

This will help our farmers under Government schemes and contract farming as well as support to vulnerable households.

Administrator November 22, 20184:04 pm

Agriculture is the mainstay of the country and to a large extent depended on our capacity and ability to produce and attain food security. The 2019 Budget prioritises Agricultural support through facilitation of partnership with financial institutions.

Administrator November 22, 20184:02 pm
Public Enterprise Reforms

Government is going ahead with the implementation of the long delayed Parastatal reforms. As these institutions ought to play a key role in transforming the economy.

Administrator November 22, 20183:58 pm

Ease of Doing Business

Government will speed up the full implementation of the ease of doing business strategy.

Administrator November 22, 20183:56 pm

A foreign currency allocation committee will be established to promote efficient management of our foreign currency inflows.

Administrator November 22, 20183:55 pm

The Multi-currency System remains in place with the US$ being the currency of reference, out of the currency basket.

Administrator November 22, 20183:55 pm

Monetary Policy Supportive Measures,

Treasury and the Central Bank will have to work more closely to achieve this policy reinforcement.

Administrator November 22, 20183:52 pm

Treasury will, however, ring-fence such revenues in line with current approved retention levels. Disbursements,will be through the Public Funds Management Systems.

Administrator November 22, 20183:51 pm
Revenue Retention Policy
Mr Speaker Sir, Section 302 of the Constitution provides that all fees taxes, borrowings and other revenues of Government, whatever their source should be remitted into the Consolidated Revenue Fund.
Administrator November 22, 20183:43 pm

In light of the resolve to ensure that expenditure commitment do not worsen challenges associated with deficit financing that have placed us in the prevailing difficult situation that we find ourselves in, the 13th cheque is, henceforth, computed on basic salary only.

Administrator November 22, 20183:41 pm

Traditionally payment of the 13th cheque is computed as the sum of basic salary, housing and transport allowances. Previously the budget incurred expenditure of around US$174.6 million in bonus payment.

Administrator November 22, 20183:40 pm

Accordingly, Government has taken the position that bonus be payable for 2018 with commitment that these payments be processed before year end.

Administrator November 22, 20183:39 pm

Salary Cut

The Minister announce that with effect from 1 January 2019 there will be a 5% cut on basic salary for all Senior positions from Principal Directors, Permanent Secretaries and their equivalence up to Deputy Ministers, Ministers and Presidium. this is also extended to basic salaries of those in designated posts in State owned enterprises.
13th Cheque
With regard to the 13th cheque payment, Government recognises that this is an integral component of the Remuneration Framework.
Administrator November 22, 20183:32 pm

Policy Thrust

The primary objective of the 2019 Budget is to stabilise the economy by targeting “twin deficits” of fiscal and current account
Administrator November 22, 20183:31 pm

Broadly, key objectives and priorities from consultations revolve around among other things, decisively dealing fiscal indiscipline, removal of pricing and policy distortion, improve foreign currency generation and establishing efficiency and optimal mechanisms for its allocation, job creation, empowerment of provinces and districts, gender equity promotion, promotion fighting corruption and turn Zimbabwe into the gateway for investment into Africa.

Administrator November 22, 20183:27 pm

The Transitional Stabilisation Programme’s (TSPs) immediate objective is macro and fiscal stabilisation.

Administrator November 22, 20183:25 pm

The Minister informs the House that he feel honoured to present his maiden Budget Statement to the August House.

Government under the New Dispensation set out a long term goal of transforming the country into an Upper Middle Income Society – Vision 2030.
To achieve this vision, Government developed a short term stabilisation strategy.
Administrator November 22, 20183:12 pm

The Minister of Finance and Economic Development Hon. Prof. M. Ncube is presenting the 2019 National Budget.

Administrator November 22, 20182:59 pm

The current commotion playing out in the National Assembly has inadvertently caused the delay of the presentation of the National Budget.

Administrator November 22, 20182:53 pm

Among the ejected Members of Parliament is the MDC Alliance Chief Whip Hon. Prosper Chapfiwa Mutseyami, the MP for Dangamvura- Chikanga.

Administrator November 22, 20182:44 pm

The Members from MDC-Alliance who did not stand up as the President was entering the Chamber have all been ordered out of the House by the Speaker of the National Assembly Hon. Adv. J. F. Mudenda. As a result commotion has now broken in the Chamber with the Members resisting to be ejected.

Administrator November 22, 20182:39 pm

Today’s live blog is brought to you by Ms T. L. Manyemba, Mr A. Nyamuramba with photographs being captured by Mr R. Dube.

Administrator November 22, 20182:36 pm

His Excellency, The President, Cde E.D. Mnangagwa has now taken his seat in the National Assembly in readiness for the National Budget Presentation.