Government ministries national budget bids in excess of ZWG700bn

GOVERNMENT ministries have submitted national budgetary requests exceeding ZWG700 billion to the Treasury for consideration in the 2025 fiscal policy statement.

However, this surpasses the imposed budget ceiling of ZWG140 billion, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, announced this during the Parliamentary Pre-Budget Seminar attended by various stakeholders in Bulawayo.

He stated that due to the overwhelming demand, the Treasury is amending the fiscal framework to accommodate fresh changes allowing the review of set limits. In his address, Prof Ncube noted that the submitted bids exceeded the ceiling of 18 percent of GDP by five times.

“The total bids for the 2025 National Budget are over ZWG$700 billion against the budget envelope shared through the second budget call circular with a ceiling of ZWG140 billion,” he said.

“That is five times the ceiling of 18 percent of GDP. Let me inform the House that the second Budget Call Circular was issued before the depreciation of the domestic currency.

“Therefore, we are updating the fiscal framework to take into account the new changes, which will allow an upward review of ceilings.”

The pre-budget seminar was held in accordance with Section 28(5) of the Public Finance Management Act, which governs the control and management of public resources, ensuring transparency and accountability in the allocation of national funds.

During the meeting Prof Ncube told participants that revenue amounting to ZWG63,1 billion against cumulative expenditures of ZWG66,5 billion was collected during the first nine months of the year, resulting in a budget deficit of ZWG3,4 billion.

He said from January to September 2024, the Treasury consistently disbursed funds, ensuring that Ministries, Departments, and Agencies (MDAs) receive the necessary budget support for their operations.

“During the same period, we have utilised 75,9 percent of the approved budget. While most Ministries, Departments, and Agencies have maintained their budget utilisation within the approved limits, a few exceptions have exceeded their allocated funds.

“One such example is the Ministry of Transport and Infrastructure Development and we are aware of the infrastructure developments that are currently underway,” he said.

However, during presentations, ministries indicated that the budgetary caps on their bids posed a challenge for operations.

For instance, the Portfolio Committee on Industry and Commerce said the ministry’s strategic priorities and areas of focus in the 2025 financial year amount to a budget bid of ZWG855,2 million.

“Treasury allocated a total ceiling of ZWG255 318 000 for the budget, which is only 30 percent of the total bid,” said Prof Ncube.

Portfolio committee for Foreign Affairs and International Trade chair, Cde Webster Shamu, said the Treasury allocated a resource envelope ceiling of ZWG2 016 214 000 (US$80 648 560) against the ministry’s proposed budget of ZWG 5 283 687 000 (US$211 347 480).

He said that within the purview of the Ministry of Foreign Affairs and International Trade there are 52 diplomatic missions over which it exercises its jurisdiction.

“An integral fact to keep in mind is that a staggering proportion of 80 percent of the ministry’s expenditure requires payments in US dollars.

“It is the committee’s appeal to the Hon Minister of Finance, Economic Development and Investment Promotion to consider reviewing the ceilings for the ministry by at least 60 percent.

“As such, the committee recommends that the Minister of Finance, Economic Development and Investment Promotion should positively consider prioritising USD allocations for the ministry’s budget to cover mission expenses.”

On ZimTrade funding, Cde Shamu further said the Government contributes 50 percent of the ZimTrade budget and industry contributes 50 percent.

“ZimTrade requested US$780 000 for Osaka 2025 and ZWG60,8 million for the general operations. Treasury allocated only ZWG30,5 million. The current allocation is inadequate to effectively support Zimbabwe’s strategic participation at Osaka 2025, limiting potential trade opportunities and international visibility,” he said.

“The committee recommends that the Minister of Finance, Economic Development and Investment Promotion reviews the ZWG allocation to 80 percent and meet the Osaka USD request of USD780 000 as promised by the Ministry of Finance.”

Zimbabwe is participating in Expo 2025 Osaka under the Connecting Lives Zone and will exhibit under the national theme: “Beyond the Limit”.

Expo 2025 Osaka presents an unparalleled opportunity for Zimbabwe to showcase its cultural heritage, economic potential and investment opportunities on the international stage.