Zimbabwe's 2009 budget has made provision for dealing with challenges to the health sector, the state-controlled Herald reported on Friday.

The budget proposed allocating US157.8 million to buy drugs and other medical supplies, and operational expenses for central, provincial and district government hospitals, the newspaper said.

Local authorities and mission hospitals would also benefit.

"With this allocation, it is my expectation that our health institutions will now be able to have improved levels of essential and necessary drugs, including other medical supplies," said Acting Finance Minister Patrick Chinamasa, as he presented the budget to parliament on Thursday.

Education was allocated US149.8 million for the construction and rehabilitation of schools, teaching material and equipment.

Chinamasa proposed to allocate US16.9 million to the Zimbabwe School Examinations Council to finance the setting, conduct and marking of public examinations.

"This is expected to go a long way in clearing all outstanding marking of examinations such as the 2008 Grade 7, ordinary and advanced level," the newspaper reported.

Chinamasa proposed to allocate US47.4 million to tertiary institutions for recurrent and capital projects.

Government's budget of US1.9 billion budget made the use of multiple currencies official for the first time since independence, the Herald said.

"The move seeks to reflect the situation on the ground while propping up economic sectors and restoring such public services as health and education," the newspaper added.