tendai biti parly 05-10-11.pngGovernment has proposed a 2012 national budget of US$3,4 billion, which is a US$700 million increase as compared to this year’s US$2,7 billion.

Launching the 2012 budget strategy paper in the House of Assembly, Finance Minister, Mr Tendai Biti said of the US$3,4 billion budget, US$2 billion will be chewed by civil servants salaries and training related costs while US$800 million will go towards infrastructure development.

Minister Biti said government will set aside money for the referendum and general elections expected to be held sometime next year.

Mr Biti also expressed confidence that government will meet its budget target basing on the general economic growth that has been experienced in the country.

“There has been fundamental increase of crop and livestock production between 2008 and now, and this is a positive development towards meeting our targets,” said Mr Biti.

The country expects a Gross Domestic Product of US$8,9 billion, which is the total value of goods and services produced in a year.

On the issue of industry capitalisation, Minister Biti said there is a great need for the re-engagement of international financial institutions for loan facility, a sign that the MDC-T Secretary General has felt the impact of the illegal sanctions imposed on Zimbabwe.

Industry is currently operating at around 43% capacity utilisation as the sector is facing liquidity problems.