The 2017 budget highlights

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).