Treasury cash to transform Byo

Judith Phiri [email protected]

GOVERNMENT, through the Treasury, continues to channel significant tax revenue towards accelerating various infrastructure development projects in Bulawayo in line with the key national budget priorities under its devolution agenda.

Under President Mnangagwa’s administration, Zimbabwe has prioritised devolution as a key pillar to achieving an upper-middle-income economy by 2030, shifting from centralised planning to empowering local authorities to drive development.

Through this deliberate agenda, the Second Republic aims to ensure equitable development across all 10 provinces, thereby reducing reliance on Harare and promoting regional economic growth.

The model has been credited for delivering key development milestones across the country through facilitating increased fiscal allocations, which boost funding to local authorities, with a planned allocation of over ZiG14 billion (approx. US$518 million) for 2026.

Devolution funding has also inspired infrastructure development, mainly in the construction and rehabilitation of clinics, schools and roads, and improving access to services across the country.

Under the devolution agenda, provinces are expected to grow into regional economic hubs by identifying their comparative advantages to build vibrant local economies, come up with programmes that foster social and economic empowerment and promote urban modernisation, among others.

Speaking at a tax education programme in Bulawayo on Friday, Ministry of Finance, Economic Development and Investment Promotion economist, Mr Prosper Ngoni Rutsito, said Treasury allocates the revenue collected through taxation for infrastructure expenditure in the country.

“If the resources collected from taxation are fully utilised for the intended purposes and the budget is properly implemented, it has huge potential to contribute towards the achievement of equality, equity, inclusive economic growth and sustainable development,” he said.

“Some of the key 2026 infrastructure projects being done in Bulawayo are refurbishment/rehabilitation of Ingutsheni Hospital at ZiG54 million, for Mpilo Central Hospital, the allocation is ZiG405 million, UBH Water Reservoir was allocated ZiG4,05 million and ZiG54 million for refurbishment/rehabilitation of UBH Hospital.”

Mr Rutsito said key projects for this year also extend to the rehabilitation of schools of nursing at a cost of about ZiG54 million, as well as the digitisation of schools of nursing at ZiG14,040 million at various institutions.

He said the National University of Science and Technology was allocated ZiG5 million for its Technovation Centre and ZiG45 million for its Central Library.  “There is also the Bulawayo Women Manufacturing Centre and solarisation of the Zimbabwe Republic Police (ZRP), each being allocated ZiG10 million. These are some of the many projects in the province the Treasury has allocated funds to,” he added.

Mr Rutsito said other allocations include the ZiG3,8 million for Sizinda Youth Training Centre, ZiG1,8 million for Insukamini Training Centre, ZiG4,5 million for Cowdray Park Magistrate Court and ZiG1 million for Bulawayo Sheriff Warehouse.

He said infrastructure development was a key pillar towards the achievement of Vision 2030.

“Therefore, the provision of appropriate infrastructure remains at the core of budget interventions by the Government, though facing limited fiscal space, absence of required external funding and lack of private sector participation,” said Mr Rutsito.

“This calls for bold and innovative initiatives to mobilise resources required to address the current infrastructure bottlenecks. That is why Government in the year 2020 introduced the Devolution Agenda: 5 percent of the total national budget.”

Guided by Vision 2030 and National Development Strategies (NDS) 1 and 2, 2026 resources for the infrastructure investment programme, including intergovernmental fiscal transfers, amount to ZiG14,4 billion.

Mr Rutsito said these were from budget revenues, development partner support, loan funding and statutory and other funding. “Implementation of key flagship projects has seen completion and commissioning of a number of infrastructure projects, clearly indicating the Government’s commitment towards addressing the country’s infrastructure gap.”

Ministry of Finance, Economic Development and Investment Promotion Acting Deputy Director Communications and Advocacy, Ms Nobukhosi Mzimkhulu, said the tax education campaign, guided by the theme: “My Tax Works – See the Change in Your Community”, was meant to strengthen public understanding of why taxes matter and how they contribute to national development.

“Taxes are the backbone of our national budget. When we say Government has resources, those resources come mainly from the taxes that citizens and businesses pay,” she said. “Given the limited access to international loans and the impact of sanctions, it is even more important that we sustain our country through our own contributions. Paying tax is, therefore, not a burden, but a responsibility that empowers us to build the Zimbabwe we want,” she said.

Ms Mzimkhulu said when taxes are not paid, Government cannot raise sufficient revenue, which may result in salaries being delayed, essential projects stalling, and the nation becoming overly dependent on external borrowing.

Ms Mzimkhulu said they understand that many people feel that there are too many taxes; however, the Government has taken note of this concern.

“Under the Second Republic, economic challenges required several revenue measures. However, the President has since introduced the ease of doing business reforms to simplify and reduce unnecessary licensing burdens, such as combining multiple licences into one for shops, wholesalers, factories and bars,” she added.

Ms Mzimkhulu said the importance of devolution funds that come directly from tax revenue could not be overstated.

She noted that the Government introduced devolution to empower provinces to plan and implement their own priority projects.

“The taxes we pay return to us as development funds to improve our communities. So, that is why we are saying your tax works. Through understanding and compliance, we can strengthen our nation and ensure visible change in every community,” she said.

The ministry held the tax education programme in three different locations and days in Bulawayo in collaboration with the Zimbabwe Revenue Authority (Zimra), themed: “My Tax Works: See The Change In Your Community.”

The initiative aimed to boost tax compliance and revenue mobilisation by improving the understanding of tax laws, procedures and obligations.