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Current Zimbabwe Government Tweaks Fiscal Policy; Larger Changes Ahead

Some in Zimbabwe are already looking past the elections and hoping for an economic rescue program under a new government, presumably with multilateral assistance.

In the meantime, the present government has tweaked its fiscal policy to raise the top marginal tax rate to 60% for incomes over Z$20 billion (US$30) a month from 47.5%. It also raised the threshold under which no tax is paid to $300 million a month.

Economists said the move looked like an attempt to recover unbudgeted election expenses, including the big pay increases given to civil servants.

As to the future, economist Godfrey Kanyenze told reporter Jonga Kandemiiri that if a new government comes to power, it will need six months to stabilize the economy.

More reports from VOA's Studio 7 for Zimbabwe...