By Own Correspondent| President Emmerson Mnangagwa has hailed the 2019 Budget statement presented by Finance minister Mthuli Ncube describing it as historic, responsible and disciplined.

Said Mnangagwa:

I wish to congratulate @MthuliNcube on a historic, responsible and disciplined budget, which both cuts costs and contains crucial confidence building measures to stimulate economic growth. (1/2)

— President of Zimbabwe (@edmnangagwa) November 22, 2018

The 2019 Budget proposed that effective January 1, 2019, there will be a 5 percent cut on basic salary for all senior positions from principal directors, permanent secretaries, and their equivalents, up to deputy ministers, ministers and the Presidium.

Below are some of the key highlights of the 2019 Budget:

Civil service bonus will be paid before year-end.

Customs duty on motor vehicles and other vehicles and other selected goods to be paid in foreign currency.

Increase in excise duty by 7cents per litre on diesel and paraffin and 6,5 cents on petrol to reduce arbitrage opportunities.

There will be no further acquisitions of non-performing loans by Zimbabwe Asset Management Company (ZAMCO).

Government is set to retire 2 917 youth officers who remain on payroll by December 2018.

Government to introduce a biometric register of all civil servants with effect from January 1, 2019, to weed out ghost workers.

The multi-currency system remains in place, with US dollar being the currency of reference.

Growth rate projections for 2018 through to 2021 have been revised downwards from those in the TSP

The government projects the economy to grow by 3.1 percent in 2019

Increase in excise duty on cigarettes from US$20 to US$25 per 1000 sticks.

Review tax free threshold from US$300 to US$350 and further widen the tax bands from US$351 to US$20 000, above which income is taxed at the highest marginal tax rate of 45 percent.

Suspension of customs duty and exemption from VAT of sanitary wear products for 12 months.

Provide further exemptions for the 2 percent intermediary money transfer tax

Re-engagement efforts raising investor interest with more than US$15 billion worth of projects being negotiated.

2019 budget deficit projected at US$2,86 billion (11,7percent of GDP) against a target deficit of US$793 million.

Government to gradually reduce budget deficit to single digit level hence targeting 5% in 2019, 4,1% in 2020, and 3% in 2021.