The 2017 budget highlights


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Highlights of the 2017 budget presented by Finance Minister Patrick Chinamasa to Parliament today.

  • Growth is projected to increase from 0.6 percent in 2016 to 1.7 percent.
  • Inflation projected to go up from a negative -1.5 percent to 1.1 percent.
  • Total expenditure projected at $4.1 billion, total revenue collection at $3.7 billion. Budget deficit seen at $400 million
  • Government wage bill to gobble $3 billion in 2017 vs $3.14 billion in 2016.
  • Capital expenditure to take up $520 million, or 3.6 percent of GDP.
  • Trade deficit to narrow from $1.985 billion in 2016 to $1.537 billion in 2017.
  • National debt stood at $11.2 billion as of October 31, 2016 or 79 percent of GDP.
  • Agriculture and mining to grow by 12 percent and 0.9 percent, respectively.
  • Government to increase tax on textile imports and extend rebates on selected raw materials to promote competitiveness of domestic industry.
  • Government to introduce a health fund levy of $0.05 for every $1 of airtime and mobile data.
  • Government to introduce tax incentives for companies operating in Special Economic Zones. (5-year exemption from corporate TAX + duty free on imports of raw materials and capital goods)
  • Duty on raw materials for sanitary wear to be scrapped.
  • Mobile banking services to be exempted from value added tax (VAT).
  • Government to promote Small and Medium Enterprises (SMEs) through downward revision of presumptive taxes, facilitation of tax registration and ring-fencing resources to capitalise the Small and Medium Enterprises Development Corporation (SEDCO).

Non-Wage expenditure budget:

  • Health: $59.1 million
  • Education: $43.3 million
  • Social Service: $28.8 million
  • Agriculture: $320.8 million
  • Energy: $5 million
  • Water and Sanitation: $42.2 million
  • Transport: $37.3 million
  • ICT: $12.8 million
  • Housing: $39.4 million

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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