2015 Mid-Term Fiscal Policy Review highlights

2015 Mid-Term Fiscal Policy Review highlights

HARARE, July 30 (The Source) – Finance minister Patrick Chinamasa delivered Zimbabwe’s Mid-Term Fiscal Policy review on Thursday. Below are the highlights

  • GDP growth rate at 1,5 pct from 3,2 percent.
  • Revenue projection revised to $3,6bn from $3,99bn. Expenditure revised from $4,1bn.
  • Budget deficit seen at $400mln.
  • Agricultural sectors performance for 2014 below expectations owing to poor rains and expected to further decline by 8.2 percent.
  • Mining expected to grow by 3.5 percent on higher mineral output.
  • Prevailing double digit lending rates preventing the recovery of manufacturing output
  • Power tariffs for tourism, mining and manufacturing pegged at 6 cents/KWH
  • Salary arrears at government parastatals – NRZ $140,1mln, Air Zimbabwe $136,4mln and GMB $20mln.
  • Tourism sector to grow by 5 percent.
  • H1 exports receipts grew 0.4pct to $1,3bn, imports up to 2pct to $3,1bn.
  • Civil service retrenchments on the cards as government bids to bring the wage bill down to 40pct of expenditure.
  • Government costs currently at $2,07bn as government channels 83 cents of every dollar obtained to salaries.
  • Public and publicly guaranteed debt at $8,4bn as at June 2015.
  • Capital expenditure at $31,4mln.
  • Government bans importation of second hand clothing and shoes.
  • Royalties for small-scale gold miners to 1pct from 3pct effective September.
  • Finance minister extends tax amnesty by 4 months to October.
  • Basic good removed from travellers rebate effective 1 August.
  • Church taxes and tithes exempt from taxes.
  • Surtax on second hand light motor vehicles – 5 years and older raised to 35pct from 25pct from September 1.