Zimbabwe 2013 Budget Highlights

Zimbabwe finance minister Tendai Biti has presented the budget to parliament in Harare.

The budget centred around, macroeconomic stability, increase of revenue base, expenditure control, attract Foreign direct investment, industrial competiveness/ cluster development, savings mobilization, agriculture and food security, leveraging mining as an anchor, improve social services, Development budget – electricity etc, Debt relief, reform agenda, peace and nation-building, youth and women as well as, bring businesses into mainstream(SMEs).

The highlights were:

  • Only 37% are served by formal institution. 77,0000 people/branch. Shocking!
  • Market Cap For ZSE up from $3bn to $4bn between Jan and October
  • Sad that 3rd highest loanees in Zim are individuals
  • Minister Biti attacks excessive roadblocks, infrastructure, corruption
  • Agric projected growth rate in 2012 is 4.6%, due to “fantastic performance” of tobacco. Tobacco quality been good
  • Zim GDP 2012 at 4.4%
  • Manufacturing growth only 2.3%. Lack of investment and excessive imports the cause
  • For every 1 dollar coming into the country 3 dollars are going out.
  • Revenue output to the end of the year is expected to be $3.5bn
  • We are killing a rat an consuming an elephant –
  • 73% of income went to wages
  • 2013 budget output is expected to be $3.8bn
  • 2013 GDP 5%
  • Violent elections is biggest risk for economy for 2013
  • $159.4 million allocated to agriculture
  • Old Mutual offers $7 million line of credit for restocking livestock in Matabeleland
  • Commodity exchange to be established next year
  • $20 million lines of credit for SMEs
  • Vocationalise education to tackle unemployment
  • Lack if strategic thinking needed by foreign banks. Should be a Zimbabwean bank which happens to be foreign owned.
  • Deposits of $1000 for a period of 30 days, interest of 4% must be given
  • NO bank charges to be levied on deposits of $800 and below.
  • Gap between lending and deposit rates should no longer exceed 10%. Banks and RBZ will also soon agree on bank charges
  • Mortgage finance is expensive and repayment time too short. Reintroduction of PUPS
  • Deposits of $1000 for a period of 30 days, interest of 4% must be given
  • NO bank charges to be levied on bank charges of $800 and below.
  • About $407 million for pro-poor services. $175.3 million for health #zimbuget
  • Resources set up for feasibility studies for provicincial hospitals in Harare and Bulawayo
  • About $407 million for pro-poor services. $175.3 million for health #zimbuget
  • Excise duty increase on tobacco and alcohol. Apa manje apa. Asi Increase directed to schools
  • Mortgage finance is expensive and repayment time too short. Reintroduction of PUPS
  • Biti says we have secured funds for the dualisation of Harare-Plumtree road,
  • $45million allocated to housing. CBZ set aside $10mil for mortgage financing exclusively for civil servants first time home owners
  • Zim to penalise mining companies who procure goods locally available
  • Total revenue from diamond received by treasury was 41 million.
  • Biti wants sanctions lifted on diamonds.
  • Suspending duty on
  • Non-taxable bonus $1000, effective 1 November 2012.
  • Incentives for teachers from parents and community now exempt from tax

Quote of the day: We are killing a rat and eating an elephant

  • I have a positive feeling about this. I hope he can stir the ship well. #optimistic

  • Kennedy Chimimba

    A prudent fiscal statement,only if his government colleagues and everyone could walk the talk.

  • Mbedzi A

    I liked the tax free bonus band…. well increases in beer price will take most of my money