2015 Mid-Term Fiscal Policy Review highlights

Finance minister Patrick Chinamasa delivered Zimbabwe’s Mid-Term Fiscal Policy review today. 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.