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Herald Reporter
THE Government should expedite the promulgation of a regulatory framework for devolution funds to quicken their disbursements, the chairperson of the Parliamentary Portfolio Committee on Budget Finance and Economic Development Dr Matthew Nyashanu said yesterday.
Dr Nyashanu said this while presenting committee’s report during debate on the Mid-Term Fiscal Policy Review Statement presented by Finance and Economic Development Minister Professor Mthuli Ncube last month.
Government has so far disbursed $7,1 billion from an allocation of $42 billion.
“The committee noted the general low utilisation of devolution funds, to which the Minister, in the Mid-Term Fiscal Policy Review statement said it reflects the need to speed up the development of a regulatory framework and clearly defined structures, including capacitation of personnel responsible for management of the funds and implementation of the project,” Dr Nyashanu said.
“The committee notes that the Ministry of Local Government is still to expedite the Provincial Councils and Administrative Amendment Bill. The legal framework has a role to articulate, define and clarify the powers, functions, roles and relations among the various governance structures. Although the constitution, broadly lays the foundation for devolution, there is urgent need for an enabling act for accountability purposes.”
He added that under the National Development Strategy 1, the Ministry of Finance and Economic Development also noted the need for a legal instrument to ensure accountability for the devolved funds.
Dr Nyashanu added that the committee welcomed increase in devolution budget from $42,5 billion to $52,5 bllion in the supplementary budget which represents 3 percent of the revised revenue projection of $1,74 trillion.
The committee commended the improved ranking of the country in the 2021 International Budget Partnership (IBP) Report wherein Zimbabwe is now ranked third in Africa, after South Africa and Benin, and 41 out of 120 countries globally.
The country scored 59 out of 100 in the 2021 International Budget Partnership Open Budget Survey (OBS).
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