Important note: Information in this article was accurate in 1999. The state of the art may have changed since the publication date.
The Associated Press - October 22, 1999
Finance Minister Herbert Murerwa called for a 3% "AIDS levy" on all company and income taxes to help combat HIV infections that plague about one-fourth of Zimbabwe's 12.5 million people - one of the world's highest infection rates.
The health department's budget would increase by 71%, but still fall far short of the 10 billion Zimbabwe dollars ($1=ZWD37.81) that the ministry says it needs to rescue the country's ailing medical system, crippled for weeks by a doctor's strike over low pay and lack of essential supplies.
As is traditional in Zimbabwe, the lion's share of the budget - ZWD17 billion - would go to education and paying the country's 150,000 school teachers. The budget will be debated later this month, but is expected to be passed by the ruling party that holds most of the 150 seats in Parliament.
"The widening gap between rich and poor threatens the very fabric of our society," Murerwa said. "The new millennium must signal a change in the way we do business in every respect."
The ZWD90 billion budget for 2000 projects a deficit of 3.8% of gross domestic product, more in line with the 6.5% guideline demanded by the International Monetary Fund and other Western funding agencies.
This year's deficit was currently about 9% of GDP, expected to drop to 7.5% by year's end.
Western donors have criticized the government for its military involvement in the Congo civil war at a time of sharply declining social services and called for severe cuts in wasteful public spending and stricter enforcement of tax laws and tax collection.
To help pay for the 10,000 troops, armor and warplanes deployed in the year-long civil war, Murerwa called for ZWD8.2 billion for the defense ministry. The sum represented 9% of the total budget, and an increase of 57% over the previous budget.
A cease-fire signed in July is still to be fully enforced.
"The peace accord signed by all parties should result in a steady decline" in military spending, Murerwa said.
The health ministry would receive ZWD6 billion.
It was'not clear how much revenue the new "Aids levy" would reap, but Murerwa said it would go into effect Jan. 1.
Murerwa announced minor modifications to tax rules that he said would draw more revenue from the rich and ease the tax burden on the poor. More than 40 state-owned enterprises were being privatized or sold to earn extra state revenues, he said.
Officials at the IMF office in Harare said Murerwa's proposals were being studied.
Last year, Zimbabwe suffered its first food riots after food prices soared by more than 25%.
Possible continuing civil unrest, driven by record inflation of 69.7% and unemployment of more than 50% of the work force, poses the biggest single threat to President Robert Mugabe's hold on power 19 years after he led the former British colony of Rhodesia to independence as Zimbabwe.
991022
AP991016
Copyright © 1999 - Associated Press. Reproduction of this article (other than one copy for personal reference) must be cleared through the AP Permissions Desk.
AEGiS is a 501(c)3, not-for-profit, tax-exempt, educational corporation. AEGiS is made possible through unrestricted funding from Broadway Cares/Equity Fights AIDS, Elton John AIDS Foundation, National Library of Medicine, Pacific Life Foundation, and donations from users like you.
Always watch for outdated information. This article first appeared in 1999. This material is designed to support, not replace, the relationship that exists between you and your doctor.
AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.
Copyright ©1980, 1999. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .