LAWRENCE BARTLETT, Harare | Thursday 6.45pm
ZIMBABWE presented a sweet and sour annual budget on Thursday as it tried to juggle conflicting demands from the International Monetary Fund and a restive population heading to the polls next year.
There were tax concessions for the poorest members of society along with incentives for exporters, but increases in some taxes and hikes in duties on fuel.
With a third of the army committed to the Democratic Republic of Congo conflict, the defence ministry was given a boost of nearly Z$3-billion, to Z$8,2-billion ($215,7-million). With hundreds of doctors in government hospitals in the fifth week of a strike, the health ministry gets a Z$2,4-billion increase to Z$6-billion.
Finance Minister Herbert Murerwa told parliament that inflation — running at a record of nearly 70% — is the country’s “number one enemy” and pledged to try to restore macro-economic stability.
He forecast a budget deficit for the year 2000 of 3,8% of GDP, which is above the target of 3% which the IMF is reported to have suggested. The IMF has complained that Zimbabwe’s economic reforms are not on track, and is watching the country’s performance closely before releasing the major portion of a $193-million credit agreed in July. — AFP
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