The 2017 budget highlights

The 2017 budget highlights

HARARE, December 8 (The Source) – Highlights of the 2017 budget presented by Finance Minister Patrick Chinamasa to Parliament on Thursday.

• 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
• Govt 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