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FINANCE Minister Patrick Chinamasa will present the 2015 national budget next week as government strives to come up with policy interventions that will stimulate the economy and investment inflows.Minister Chinamasa last week said the budget would be presented on November 27. The government has been on a drive to reduce its expenditure especially the huge wage bill which at 76 percent is crowding out capital projects.
Market watchers say the minister should come up with a solution to this problem in the budget.
The budget is also expected to address funding for the agriculture sector, full utilisation of the country’s mineral resources and beneficiation as well as coming up with solutions for the recapitalisation of the country’s ailing industry.
The country is currently running on a cash budget and this year’s budget might be affected further as the government continues to miss revenue targets.
For the third quarter to September 2014, Zimra missed its $972,3 million target by nine percent to collect $884,5 million.
The tax agency warned of a flat performance in the fourth quarter as tight liquidity and poor economic fundamentals take their toll on company performances.
Minister Chinamasa earlier this year revised the country’s Gross Domestic Product growth downwards from 6,1 percent to 3,1 percent in response to low business and investor confidence, scarce liquidity and subdued international commodity prices.
Last year’s budget was $4,2 billion and Zimra only managed to collect a total $3,4 billion in tax receipts, six percent short of a $3,6 billion target. – BH24.
Online Reporter