2013 National Budget: Tax-free bonus now US$1 000

THE 2013 National Budget presented by Finance Minister Tendai Biti on Thursday has been met with mixed feelings by stakeholders. 
Confederation of Zimbabwe Industries president Mr Kumbirai Katsande said the budget covered almost every aspect of the economy. 
"There is no doubt that the minister tried to cover as much ground as possible.
"The budget shows that it was created in consultation with many stakeholders and the Cabinet," he said.
"The only question is whether or not the economy can generate the necessary funds needed."
Mr Katsande said there were still consultations to be done with various stakeholders, especially the banking sector, on bank charges.
"Representing the manufacturing sector, we are very happy with the measures put in place by the minister, especially on the protection of locally-manufactured goods and address the problems at the border posts where importers are not paying duty," he said.
Mr Katsande said although he was not sure which items were on the list, the move was guaranteed to get good results considering that local manufacturers have had their backs to the wall and local companies were either closing or scaling down operations.
Economist Mr Christopher Mugaga said the budget was ambitious as well as discordant.
"The 15-point-plan is interesting, but can it be achieved in an economy set to grow by 5,4 percent with a few players involved?" he said.
Mr Mugaga said what Minister Biti proposed and the facts on the ground did not tally.
Speaking on the measures imposed on banks, Mr Mugaga said the move was set to suffocate their operations that thrive on bank charges.
"The minister is trying to impose an 'Islamic banking system' but that is not possible in Zimbabwe because our banks thrive on these charges," he said.
Mr Mugaga said funds allocated to health were inadequate.
He said US$175 million was only enough to cater for consultation fees for everyone in the country.
"This means that there is no money for treatment and medication, the budget is anti-banking and pro-social thus creating discord," said Mr Mugaga.
Another analyst Mr Rongi Chizema said the budget was realistic.
"The minister did the best he could. The fact that he worked with a budget of US$3,6 billion is evidence that he was acknowledging that he does not have much room to manoeuvre considering available revenue inflows. He was not trying to be too ambitious," he said.
Mr Chizema said the 15-point plan was a good basis to plan for next year and shows that the minister had done some prioritisation and is focusing on growing the economy.
"The problem is that we are failing to find ways of growing the cake.
"The only way we can grow the cake is to grow the economy, but then we cannot do that because people are not working, companies are lying idle, not producing," Mr Chizema said.
He said people were spending too much money on exports, while the country was not producing enough to sustain itself.
Mr Chizema said it was up to all stakeholders to make sure that every part of the economy worked to generate funds needed to grow.
On measures imposed on banks, Mr Chizema said the move was good and would boost confidence in the banking sector.
"The minister was trying to discourage people from keeping money under their pillows, but encouraging them to trust the banks to safeguard their money, thus promoting circulation of money in the banking system," he said.
Mr Chizema said Minister Biti was trying to discourage banks from imposing high charges on depositors and using that same money to make more.
"I believe these measures will work, they will bring normalcy to the banking sector," he said.