The Ministry of Finance in Zimbabwe has put in place mitigatory measures and interventions covering the prevention of the ravaging coronavirus, as well as helping the productive sectors in the country.
The government said measures to support the production sectors will continue to be reviewed in order to save lives and reduce the damage to the economy. In a statement released yesterday, the minister said the Treasury has availed ZW$500 million to fight the deadly pandemic.
For preparedness, the government put aside ZW$50 million which is going to be handed over to the Premier Service Medical Aid Society, and to cater for the health requirements for civil servants who are the majority members of the society.
The Minister of Finance Mthuli Ncube, said the government is now redirecting its capital expenditure allocations under the 2020 National Budget towards health related expenditures including water supply, and sanitation programmes.
However, the minister said the government will continue the implementation of priority programmes and projects to sustain the economy, such as roads, dam construction, irrigation, among others.
The government also highlighted the issue of social protection, and said it will help vulnerable groups of the society who are the most exposed to the COVID-19 crisis. Under this bracket the government will be paying out ZW$200m per month to a million vulnerable households over the next three months.
The amount and the duration of the payments will be reviewed as necessary. The department of Social Welfare will use its laid down mechanisms to identify the beneficiaries. The minister also said health insurance for civil servants has also been looked into, and funds have been set aside for that purpose.
In order to ensure enough human resources in the health sector, the government is unfreezing 4 000 health sector posts and creating 200 new medical posts. The minister said the 2% Intermediated Money Transfer Tax (IMTT) stays, but will be channeled towards COVID-19 related expenditure.
To support economic activities, the government lifted duty and suspended tax on goods and services related to testing, protection, sterilisation, and other medical consumables. The government is also engaging local production companies to identify key areas that need urgent attention, so that the anticipated economic slowdown as a result of the pandemic is addressed in time.