adminNqobile Tshili, Chronicle Reporter
GOVERNMENT has disbursed $42 million to local authorities to support devolution projects during the first quarter of the year, the Ministry of Finance and Economic Development has said.
In its First Quarter Treasury Bulletin Highlights, the Ministry said funds to support devolution were raised through the two percent Intermediated Money Transfer Tax (IMTT) introduced late last year.
“The 2019 National Budget allocated some RTGS$310 million for the devolution programme under which resources are to be distributed to Provincial and Local tiers, in line with the Constitutional provision under Chapter 14 on devolution,” reads the Treasury Bulletin.
“The devolution objective is to achieve growth and development that is equitable, shared and sustainable to the benefit of citizens at all levels. Consequently, from the two percent ring fenced Intermediated Money Transfer Tax (IMTT) resources, Treasury has so far disbursed RTGS$42 million to Ministry of Local Government, Public Works and National Housing for the devolution programmes. ”
Treasury said the two percent tax has enabled Government to effectively fund relief efforts after Cyclone Idai hit some parts of Manicaland and Masvingo provinces.
Government disbursed $100 million towards the disaster which claimed more than 300 lives while destroying infrastructure worth millions of dollars.
Treasury also commended the international community for responding to the disaster.
It also noted that President Emmerson Mnangagwa also launched an international appeal in response to Cyclone Idai.
“Government is also grateful for complementary support received from various development partners, local institutions and the public and the international community at large.
“Furthermore, given the severity of the disaster, the President has since launched a costed International Appeal amounting to US$612,6 million in order to complement Government efforts towards restoration of livelihoods,” said the treasury bulletin. — @nqotshili
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