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Zimbabwe’s finance minister, Patrick Chinamasa has revealed plans to reduce the wage bill by 40% from the current 80% as the government struggles to reduce its expenditure.
In his presentation of the Mid-term Fiscal Review in Parliament on Thursday, Chinamasa the move would free fiscal space to cover projects under the Zimbabwe Agenda for Sustainable Socio Economic Transformation.
Chinamasa said revenue for 2015 would be $3,6 billion against a target of $3,99 billion. Expenditure would come down to $4 billion from $4,11 billion. He said the gap of $400 million would be financed from domestic and external sources.
He said there were some executives from parastatals who were earning above the stipulated salary of $9 000 set by Cabinet saying a Bill would be in place to ensure that Cabinet directive on salaries was enforceable.
Chinamasa removed groceries from travellers rebate saying the commodities can be obtained locally thereby boosting local industries.
He removed second hand clothing and shoes from the open general import licence adding that any future importation of second hand clothing and shoes will be liable to forfeiture and seizures.
He said tax amnesty on defaulters will be further extended by four months to October. source-newsday