Chinamasa also said all civil servants over the age of 65 would have to retire as the government aims for a 2018 budget deficit of below four percent of gross domestic product.
Government spending ballooned under Mugabe with more than 90% of the budget going on public servant salaries.
President Emmerson Mnangagwa has blocked the blowing up of over $219 million on expensive cars by ministers, chiefs and MPs.
Finance Minister Patrick Chinamasa announced a package of measures aimed at wooing worldwide investors, including new curbs on laws that require firms to be 51% locally owned.
He has also offered a three-month amnesty for individuals and companies to surrender public funds illegally stashed overseas.
Former Reserve Bank of Zimbabwe governor Gideon Gono described the national budget as "comprehensive under the circumstances, practical, bold, courageous, forward-looking, investment stimulating, confidence boosting and painfully sweet".
"Money creation, through domestic money market instruments which do not match with available foreign currency, only serves to weaken the value of the same instruments, translating into rapid build-up in inflationary pressures, to the detriment of financial and macro-economic stability", said Minister Chinamasa.
But in Thursday's budget announcement, Mr Chinamasa said the law would apply only to the platinum and diamond sectors from now on.
Zimbabwe's Finance Minister Patrick Chinamasa presents the country's 2014 National Budget to Parliament in Harare, December 19, 2013.
The $5,7 billion budget is $1,6 billion more than last year's $4,1 billion.
"The 2018 budget is appropriating $3,3 billion for employment costs, with $2,6 billion being set aside for the Public Service wage bill, inclusive of grant aided institutions", he said.
Among other promising strategies to be addressed soonest includes addressing youths unemployment, dualisation of Africa's business highway (Beitbridge-to-Chirundu), cutting unwarranted civil servants' ballooning and unattainable expenditure, tracking of externalised fund, loosening of indigenisation policy that initially compelled locals to have 51% shares in foreign owned companies.