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Patrick Chitumba, Midlands Bureau Chief
GWERU City Council has proposed a budget of over $2, 2 billion for 2020, a development that will result in massive increases in rates.
The local authority is holding 2020 budget consultative meetings with residents in all the 16 wards and their respective councillors leading the exercise.
This year the local authourity had a budget of $46 million and later applied for a supplementary budget of $79 million which has not been approved by the Ministry of Local Government and Public Works.
Council shelved all capital projects after the supplementary budget was not approved.
“The 2020 budget proposal is based on the need to budget for capital projects which have been suspended. This is also based on actual quotations we got from suppliers using the prevailing exchange rate. This year’s budget is $46 million because when we did it the exchange rate then was 1:1. But since we are now using our local currency, the budget proposed is ZW$2, 292, 117, 879,” said Acting finance director Mr Masimba Masimba.
He said the interbank rate was used in coming up with the proposed budget.
Mr Masimba said prices of goods and services have been increasing, hence the need for the local authority to have a budget that is up to date so that it continues to offer services to residents and businesses.
“For example before the removal of the 1:1 exchange rate by the Government, we were paying ZW$221 000 for our electricity bill, in September it was ZW$1, 1 million and this month it’s at ZW$2, 9 million. Water chemicals, we had budgeted ZW$26 000 but we have been quoted ZW$1, 2 million,” he said.
“Our budget is very practical because we used our procurement department to look for quotations for purposes of planning of goods and services needed for service delivery. We are looking at chemicals, fuel for example and we factored in a small amount to cover which is something practical.”
Mr Masimba said council sent three broken water pumps for repairs to a Harare company and it was charged US$40 000.
“We were charged for the broken pumps an equivalent of US$40 000 for repairs and now to redeem them that company is asking for $948 000 which is far from what the amount was. So while we try to be pro-poor we are working with what is prevailing on the market,” he said.
Gweru Mayor Councillor Josiah Makombe said, “It’s true that our proposed budget is over ZW$2 billion. It’s based on capital projects. We have also factored in the inflation rate as expected next year. Remember Government’s budget for 2019 was US$8 billion and for 2020 it’s ZW$64 billion. So we came up with ours using the Government formula. It looks huge but the value is not that strong.”
Online Reporter