Chronicle Editor
Judith Phiri , Business Reporter
THE Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube has said the 2024 budget seeks to consolidate and entrench stability that facilitates economic transformation and preserve disposable incomes.
The budget was themed, “Consolidating Economic Transformation”.
The Minister said during the formulation process of the 2024 National Budget, Ministries, Departments and Agencies (MDAs) submitted funding requirements (bids) of over Z$110 trillion, against the available envelope of Z$58.2 trillion
He said the envelope was limited by the sustainable revenue to GDP ratio of about 18 percent which has been allocated to MDAs.
“The fiscal policy thrust for the 2024 National Budget is guided by the need to maintain a sustainable budget deficit within the SADC macro-economic convergence threshold of not more than 3 percent of GDP. Going into 2024, Government seeks to consolidate and entrench the stability to facilitate economic transformation and preserve disposable incomes.”
He said fiscal restraint and tight monetary policy, together with a healthy current account position, provides the necessary conditions for currency and price stability while the Central Bank will target month-on-month inflation rate of less than three percent throughout 2024.
In terms of the budget priority areas, for civil service remuneration, the Minister said Government will convert the current Covid-19 and cushioning allowances, aggregating to US$300, to be part of the pensionable emoluments across the board, effective January 2024.
On allocation a huge chunk went towards infrastructure, ICT, and the digital economy as overall support for infrastructure, including devolution, during 2024 amounts to Z$10 trillion, comprising fiscal support of Z$8.1 trillion, complemented by statutory and other resources at Z$1.4 trillion, development partner support of Z$189.9 billion, as well as loans at Z$322.2 billion.
National security was allocated Z$8.6 trillion towards the security cluster to meet their remuneration, food rations, operational equipment and the necessary infrastructure for the Ministry of Defence, Home Affairs and Cultural Heritage, Prisons and Correctional Service, as well as Special Services.
While, Z$8 trillion has been set aside for the Ministry of Primary and Secondary Education for teaching and learning materials, as well as teacher capacitation at primary and secondary education level. Z$4.3 trillion is being allocated to Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to spearhead the implementation of Agriculture and Food Systems Transformation Strategy.
Other major allocations are as follows: $130.5 billion allocated to the Ministry of Industry and Commerce. Z$132.7 billion allocated to the Ministry of Mines and Mining Development. Z$71.1 billion allocated to the Ministry of Tourism and Hospitality Industry. Z$135.5 billion allocated to the Ministry of Environment, Climate and Wildlife. Z$1.2 trillion allocated to the Ministry of Transport and Infrastructural Development. Z$90.1 billion allocated to the Ministry of Energy and Power Development.
Z$185.3 billion allocated to the Ministry of Information Communication Technology, Postal and Courier Services. Z$353 billion allocated to the Ministry of National Housing and Social Amenities. Z$608.3 billion allocated towards strategic priorities in the water and sanitation sector. Z$210.2 billion allocated to the Ministry of Youth Empowerment, Development and Vocational Training.
In addition, Z$136.2 billion allocated to the Ministry of Sport, Recreation, Arts and Culture. Z$188.1 billion allocated to the Ministry of Women Affairs, Community, Small and Medium Enterprises Development while Z$221.8 billion was allocated to the Ministry of Veterans of Liberation Struggle Affairs.
Z$6.3 trillion allocated towards the Ministry of Health and Child Care. Z$2.4 trillion allocated to the Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development. Z$43 billion allocated to the Ministry of Skills Audit and Development. Z$2.4 trillion for the Ministry of Public Service, Labour and Social Welfare to implement social protection programmes.
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