Government to decide on BCC’s forex budget proposal

Nqobile Tshili, Chronicle Reporter
GOVERNMENT will decide whether the Bulawayo City Council (BCC) can rebase its 2020 budget to US dollars as proposed by the local authority.

Rebasing of budget will result in council billing residents in forex while those without access to foreign currency can pay the equivalent in local currency.

The council earlier this month proposed to rebase its 2020 budget to foreign currency stating that it was unsustainable to continue budgeting using local currency.

BCC noted the local currency was losing value and most service providers were demanding forex.

Inflation, council said, had reduced its initial 2020 budget of $1,315 billion that stood at US$122 million when it was crafted, to about US$17,5 million.

The council says in billing residents using foreign currency, those paying in local currency will pay at the agreed US$:Zim dollar rate for the day.

Council had said residents will pay 50 percent of what they used to pay during the dollarisation era.

This means that for suburbs where residents used to pay US$30, they will pay US$15 or equivalent in the local currency.

BCC bases its decision to charge in forex on Statutory Instrument 85 of 2020, allowing citizens to pay for goods and services chargeable in Zimbabwe dollars, in foreign currency using free funds.

Residents associations have objected to council’s proposed measures saying most people were struggling for survival and the new scheme could see most of them failing to pay rates.

Responding to Chronicle questions, BCC senior public relations Mrs Nesisa Mpofu said budget rebase issue will be re-tabled before a full council meeting next Wednesday before being forwarded to relevant Government departments.

“Please be advised that the final details will be made available at the next full council meeting scheduled for 5th August 2020. Following the resolution by council, the rebasing of the budget will also have to be sent for approval by the Minister of Local Government in terms of the Public Finance, Management Act Section 47,” said Mrs Mpofu.

Bulawayo Mayor councillor Solomon Mguni said it would be prudent for council to rebase its budget in foreign currency.

“The economy itself has been partially dollarised due to the SI 85 of 2020 which allows goods and services to be paid in foreign currency. So, we are following suit we cannot remain behind. otherwise, we would end up charging rates which are not economic and we would end up failing to deliver on our mandate to residents. So, it will be important for us to be allowed to rebase our budget,” said Clr Mguni.-@nqotshili