BUDGET 2020 UPDATE

Online Reporters

All is set for the presentation of the National Budget statement by Minister of Finance and Economic Development, Professor Mthuli Ncube Thursday afternoon.
Minister Ncube will unveil his second Budget statement in which he is expected to announce far-reaching interventions to ease austerity which he imposed last year.

A small crowd was slowly building up inside Africa Unity Square, adjacent to Parliament Building, where the statement will be delivered.
However, rain-heavy clouds above central Harare are threatening to dampen the crowd’s mood with a high likelihood of rains.
Scores of police are milling around the square and are maintaining peace and order during the proceedings.
President Mnangagwa is expected to attend the presentation.

Minister Mthuli says the Budget is a “People’s Budget”, whose theme is, “Gearing for Higher Productivity, Growth and Job Creation”.

He says austerity was not a retribution, but national finances were in shambles and required re-balancing. The implementation of key infrastructure projects such as Hwange 7 and 8, RGM International Airport are on course, he added.

Cyclone Idai left about 275 000 in need of assistance.

Prof Ncube says economic growth of up to 3 percent is expected in 2020 and that the 2020 Budget marks exit from austerity to prosperity.

He says all civil servants to get bonuses in November and that grain subsidies will be removed beginning next year to avoid abuse of facilities. But transport subsidies to continue to cushion the commuting public.

Prof Mthuli proposes a Youth Employment Tax incentive to promote employment of youths. Any additional job created by a company will attract a tax incentive for the company to reduce its cost for employing youths. He says the Budget will seek to strengthen the protection of patents.
$1 billion has been set aside for the Harare-Beitbridge Highway.