FINANCE and Economic Development Minister Professor Mthuli
Ncube yesterday presented a pro-people 2020 National Budget, which announced
various safety nets for vulnerable people including bonuses for all civil
servants this month, a better mass public transport system and an increase in
the tax free threshold to $2 000.
Presented under the theme, “Gearing for Higher
Productivity, Growth and Job Creation”, the budget has several worker-friendly
measures including revising the tax-free bonus threshold from $1 000 to $5 000.
The bonus is based on gross salary.
Economic analysts and social commentators view a “people’s
budget” as one that seeks to create a brighter future for all citizens,
ensuring that every family struggling for survival has a fair opportunity to
live well.
Investment in infrastructure, safety and prosperity of
citizens is seen as crucial.
In an environment of rising prices, bonuses will avail more
disposable incomes for civil servants ahead of the festive season.
Prof Ncube revealed that against the background of the
inflationary environment, employee incomes will be reviewed constantly to
ensure a decent living for citizens.
The tax free threshold was raised from $700 to $2 000,
implying that at current salaries of $1 023 for the lowest paid civil servant,
most of them will not be taxed.
Tax bands had been adjusted to begin at $2 001 and end at
$50 000, above which the highest marginal tax rate of 40 percent would apply
with effect from 1 January, 2020.
He said Government also remained committed to social
dialogue and planned to put in motion, the establishment of an independent
secretariat to oversee the work of the Tripartite Negotiating Forum (TNF) as
provided for in the TNF Act.
Through social dialogue, Government, business and labour
would develop measures to address the socio-economic challenges confronting the
country.
To protect vulnerable groups in society, Government
intended to extend targeted subsidies on the production of roller meal, cooking
oil and the standard loaf of bread.
A reimbursement system would be implemented to extend the
subsidy to the producers of roller meal, cooking oil and standard bread through
tax set-off arrangements where possible, and voucher schemes.
Prof Ncube added that Government would continue subsidising
the mass transport system and capacitate Zupco to provide an efficient public
transport system.
Zupco would be capacitated to purchase more reliable
conventional buses to reduce the burden on both urban and rural people.
In addition, Government had ring-fenced the importation of
100 public service buses of a sitting capacity of at least 60 passengers, at a
reduced customs duty rate of 5 percent to ease transport challenges.
To date, 51 buses had been imported and Prof Ncube proposed
to extend the facility for 12 months beginning January next year to afford an
opportunity to other bus operators to replenish their fleets.
An operator would be limited to five buses.
In terms of housing provision, Government was seeking to
bridge the 1,3 million unit housing backlog within the context of urban renewal
or regeneration under the National Housing Delivery Programme. This involved
the modernisation of old or dilapidated superstructures and the attendant
infrastructural services such as sewer and water.
The National Human Settlements Policy being developed would
guide the operations in the housing sector including urban regeneration for
projects such as Mbare in Harare, Sakubva in Mutare and Makokoba in Bulawayo,
funded through the market. “On its part, Government will avail land and support
local authorities invest in servicing of the land by putting up required
infrastructure such as roads, water and sewer lines and water reservoirs.
“This allows the middle class to invest in housing
construction. For the less privileged, Government, through vehicles such as
UDCORP and IDBZ, will support implementation of various housing projects
countrywide.
“Furthermore, and given the fact that land is a finite resource,
flats will be constructed in identified sites with existing off and on site
infrastructure such as Budiriro, Dombotombo in Marondera and Senondo in
Gwanda,” said Prof Ncube.
Civil service accommodation and institutional accommodation
would be given priority on a cost recovery mechanism.
Government would also scale up social protection
interventions for vulnerable citizens at a time when over six million people
required food aid in rural areas.
An additional 2,2 million in urban areas also need
assistance, according to the Zimbabwe Vulnerability Assessment Committee
(ZimVAC) report. Food insecure citizens would be supported up to March next
year.
Labour constrained households which consist of persons with
disabilities, the chronically ill, elderly and child-headed households would be
entitled to free food handouts among other interventions like assisted health
care under the Assisted Medical Treatment Orders (AMTO) facility and cash
transfers.
To avert starvation during the peak hunger period of
January to March 2020, the Budget proposes to allocate $5,2 billion for
purchase and importation of grain.
Non-labour constrained households shall participate in
public works programmes to be undertaken in the communities.
Prof Ncube said resources were being mobilised to allow
communities to undertake small income generating projects under the Sustainable
Livelihoods programme.
The Harmonised Social Cash Transfer to vulnerable
households was also being scaled up from the current 23 districts to 33 in an
effort to cushion vulnerable communities, said Prof Ncube.
“Districts not yet targeted for Harmonised Social Cash
Transfer will continue to be assisted under the traditionally means tested
Public Assistance programme,” he said.
Under the Basic Education Assistance Module (BEAM),
Government was currently assisting 415 000 children but this was being scaled
up to cater for 1,2 million children.
Prof Ncube said children living under difficult circumstances
continued to get assistance under the Children in Difficult Circumstances Fund,
with those living in children institutions getting more support. Zimbabwe
Revenue Authority (Zimra) donations were being channelled towards those living
under institutional care.
Government would continue to play its role in capitalising
various institutions which support women, youth and medium and small scale
enterprises (MSMEs) besides facilitating access to markets, workspace, trade
promotion and capacity building, among other functions.
The 2020 Budget provides for capitalisation of institutions
that support various MSMEs projects which include the Women Development Fund
($20 million); the Community Development Fund ($15 million); the Zimbabwe Women
Microfinance Bank ($100 million); SMEDCO ($90 million); and Empowerbank ($50
million).
Prof Ncube said specific allocation in support of projects
and programmes aimed at empowering women, including the completion of
refurbishment of training centres, Jamaica Inn and Rodger Howman, construction
of safe houses in all provinces in 2020 would be made. Herald
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