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Nqobile Bhebhe
Bulawayo Bureau
Ministries have submitted national budgetary requests exceeding ZiG700 billion to the Treasury for consideration in the 2025 fiscal policy statement, and as is normal this greatly exceeds the budget ceiling of ZiG140 billion, announced by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube.
In the Parliamentary Pre-Budget Seminar attended by stakeholders in Bulawayo, he said that owing to the overwhelming demand, the Treasury was 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 five-fold.
“The total bids for the 2025 National Budget are over ZiG$700 billion against the budget envelope shared through the second budget call circular with a ceiling of ZiG140 billion. 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 ZiG63,1 billion, against cumulative expenditures of ZiG66,5 billion was collected during the first nine months of the year, resulting in a budget deficit of ZiG3,4 billion.
From January to September, the Treasury consistently disbursed funds, ensuring that ministries, departments, and agencies received the necessary budget support for their operations.
“During the same period, we have used 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 ZiG855,2 million.
“Treasury allocated a total ceiling of ZiG255 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 ZiG2 016 214 000 (US$80 648 560) against the ministry’s proposed budget of ZiG 5 283 687 000 (US$211 347 480).
Within the purview of the Ministry of Foreign Affairs and International Trade there were 52 diplomatic missions. “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.
Online Reporter