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Zimbabwe - Monthly Bulletin - November 2018
The Government of Zimbabwe (GOZ) released the 2019 budget on 22nd November 2018, meant to buttress the initiatives in the Transitional Stabilization Programme (October 2018 – December 2020). The key highlights of the budget were: Growth: The minister acknowledged that the prevailing weak macro-economic fundamentals will subdue growth in 2018, which has been downgraded to 4.0%. Growth is expected to reach 3.1% in 2019 and 7.5% in 2020, mainly driven by agricultural, tourism and mining activities. In terms of Fiscal policy, the government acknowledged the high fiscal deficit over the last couple of years and noted that the 2018 deficit will reach 11.7% of the GDP. However, plans are being put to reduce the deficit to 5% in 2019 and 4.1% in 2020. Measures proposed include 5% salary cuts for senior civil servants; retrenchment of public servants above 65 years and 3000 Youth officers, among other austerity measures. Revenue mobilization will also be enhanced by ensuring that all revenue are centrally collected by the Zimbabwe Revenue Authority (ZIMRA), remittance of all revenue collected by government ministries and departments into the Consolidated Revenue Fund, and some additional taxes on income and purchase of goods and services as well as sale of some State Owned Enterprises.