Zimbabwe's new government pledged on Thursday to re-engage with international lenders, curb spending and attract investors in order to revive its battered economy.
In the first budget since last month's removal of long-time ruler Robert Mugabe, Finance Minister Patrick Chinamasa also said the government would amend indigenisation laws.
This will limit a 51 per cent local ownership requirement to just the platinum and diamond sectors.
The laws were designed to increase black Zimbabweans' share of the economy but were opaque and open to abuse - to the detriment of foreign investor confidence.
"As we focus on recovery of our economy, we must shed misbehaviour and acts of indiscipline which have characterised the past," he told parliament.
To cut a budget deficit projected at more than 10 per cent of GDP this year, he said the government would retire all civil servants aged over 65 and close some overseas diplomatic missions.
Government spending ballooned under Mugabe - part of the patronage machine that kept him in power for 37 years - with more than 90 per cent of the budget going on civil servant salaries, leaving precious little for the investment needed to boost growth.
More on Zimbabwe: Mnangagwa gets first Sh15.7b loan to revamp Robert Mugabe airport
- Thank you for participating in discussions on The Star, Kenya website. You are welcome to comment and debate issues, however take note that:
- Comments that are abusive; defamatory; obscene; promote or incite violence, terrorism, illegal acts, hate speech, or hatred on the grounds of race, ethnicity, cultural identity, religious belief, disability, gender, identity or sexual orientation, or are otherwise objectionable in the Star’s reasonable discretion shall not be tolerated and will be deleted.
- Comments that contain unwarranted personal abuse will be deleted.
- Strong personal criticism is acceptable if justified by facts and arguments.
- Deviation from points of discussion may lead to deletion of comments.
- Failure to adhere to this policy and guidelines may lead to blocking of offending users. Our moderator’s decision to block offending users is final.