Biti also proposed a $3,8 billion 2013 budget with civil servants chewing 73 percent of the budget.
He said bank balances with US$800 will not be subjected to bank charges.
Presenting his 2013 budget statement in Parliament on Thursday, Biti said about $2,6 billion will go towards civil servants’ salaries, leaving very little and not enough to aid development.
“Economic growth has been revised to 4,4 percent from 9,4 percent.
Despite Zimbabwe being one of the fastest growing this year economic growth slowed down,” he said.
He said the 2013 budget was inspired by the need for economic growth and job creation. The Finance Minister said imports remained very high for a small economy like that of Zimbabwe.
Biti also made provisions for the country’s referendum and elections scheduled for next year.
He further emphasised the need for political stability in the country, saying the absence of the rule of law put a damper of the country’s prospects of realising total economic growth.
Agricultural growth was revised down from 5,5 percent to 4,6 percent.
The other highlights include 144 million kg of tobacco sold during the
2011/12 season, 17 000 metric tonnes of wheat expected from 100 000 metric tonnes and a loan- to-deposit ratio of 75 percent.
In 2012, Biti proposed a $4 billion budget. Originally, he had set the budget at S$3,4 billion but subsequently factored in anticipated revenue from diamond sales.
“We need to come up with policies and new reform measures that stimulate growth and follow them if economic growth is to improve,”
said Biti.
Biti said the budget’s success hinged on rainfall patterns, but the biggest risk was a violent election similar to what transpired in 2008.
“If that happens (violence) it will be a case of making two steps forward and 20 steps backwards,” said Biti who noted that this would the last budget under the Government of National Unity set up in early 2009.
Biti said growth momentum would be underpinned by expansion in finance, mining, tourism, agriculture, manufacturing and transport sectors.
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