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The Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube says the disbursement of funds by the Treasury allocated under the 2024 National Budget has been delayed due to the introduction of the Zimbabwe Gold (ZiG) currency.
ZiG was launched last by Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu when he presented the monetary policy statement.
Appearing before the joint Parliamentary Portfolio Committee on Budget and Finance and Industry and Commerce on Monday, Ncube said the Treasury had to reprocess documents to reflect ZiG currency instead of RTGS. Said Ncube (<a href="https://www.newsday.co.zw/local-news/article/200026589/zig-stalls-disbursement-of-govt-funds">via NewsDay</a>):
<blockquote>
The delay in budget release and cash release has been in the past, but I have ordered that the system be changed and be driven by cash flow.
The introduction of ZiG will delay the release because we had a budget announcement denominated in RTGS [real-time gross settlement] and in April this year we announced the ZiG in the middle of the month.
Because of the documentation and balance processes that were ready, we could not release funds because of changing to ZiG.
This ZiG introduction has delayed disbursements of funds, but I have been assured that they are changing it.
At the time of presenting the budget last year, the exchange rate was going up and also when the ZiG was introduced, the exchange rate had ballooned.
So clearly there was an erosion of the budget, but the exchange rate and inflation also cut both ways, when the exchange rate was weakening the inflation was going up, and revenues were also increasing.
</blockquote>
Ncube also said he will introduce a ZiG budget next month, adding that there was no need for a supplementary budget.
A supplementary budget is a request by government departments and agencies for additional funding during a financial year. It serves to cover expenses that were not initially included in the original budget.
It often involves borrowing or reallocating funds from other sources, which can affect the overall debt situation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

ZiG Currency Delays Disbursement Of Government Funds

Finance, Economic Development and Investment Promotion Minister Mthuli Ncube made several revisions to his tax proposals in the 2024 national budget.
Ncube steered through his national budget in a sitting of parliament which concluded just before 1 AM on Friday.
In his 2024 budget statement, Ncube proposed an increase in passport fees from US$120 to US$200 starting from January 2024.
He told lawmakers that he had planned to use the money to install automated passport readers at ports of entry to remove the need for human intervention.
However, MPs objected to the proposed hike and Ncube revised the passport fees. He said:
<blockquote>
On passport fees, we have listened carefully to the contributions from the portfolio chairpersons and Hon. Members that the US$200 is on the high side, and we agree with that.
It is just that when we were having the discussions about modernising our borders, we wanted to be the first country outside Dubai to have an unmanned border post where you can walk in because now we have an e-passport with a chip in it
You can walk in and the gates open your passport is read. You do not talk to anybody. We want that equipment here by the end of 2024. We have to be modern. That is what motivated us.
It is the kind of thinking to say we need resources to support the Ministry of Home Affairs and we thought that increasing passports was one way to do this.
Someone proposed that rather than US$120 for an ordinary passport, let us make it US$150.
It is a proposal, but for the express passport, the 24-hour passport, anyone who needs it urgently is often those who can afford it.
That one should be US$250. I know one Hon. Member who proposed US$350, but let us make it US$250 and I think US$250 is okay.
</blockquote>
The budget passed with only ZANU PF MPs present after Citizens Coalition for Change (CCC) MPs were ejected from parliament and banned for four sittings.
The opposition MPs were sanctioned after singing and heckling when Speaker of Parliament Jacob Mudenda announced Pedzai Sakupwanya as the new MP for Mabvuku-Tafara.
Sakupwanya won the seat by default after the CCC candidate, Munyaradzi Kufahakutizwi, who beat him only in August before he was controversially recalled by Sengezo Tshabangu, was barred by the High Court from contesting.
Parliament adjourned until 30 January 2024.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Ncube Revises Passport Fees

The Government, through the Ministry of Information, Publicity and Broadcasting Services, says the 2024 national Budget proposals presented by Finance Minister Mthuli Ncube on 30 November are still going through parliamentary processes and have not been adopted.
Zimbabweans were shocked by some of the measures proposed by Ncube such as hiking passport, toll, and vehicle registration fees.
Ncube also proposed to increase the fuel levy, introduce a sugar tax, and impose a “wealth tax” on persons owning a home worth more than US$100 000, among other unpopular measures.
In a statement, the Ministry of Information, Publicity and Broadcasting Services said the Government had noted the concerns raised bt citizens. Read the statement:
<blockquote>
The Ministry of Information, Publicity and Broadcasting Services would like to inform the people of Zimbabwe that the 2024 national Budget proposals presented last week by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube are still going through parliamentary processes.
Parliament has set up committees to take into account the genuine concerns of the people of Zimbabwe, and the civic and business community.
The Budget process goes through various stages against the background of estimated expenditure and expected income estimates.
The setting up of committees makes the Budget process purely a stakeholder-driven approach and involves debates in the National Assembly and Senate.
The Budget proposals are guided by the National Development Strategy 1 (NDS1) and the people of Zimbabwe.
The expected revenue inflows, the estimated expenditure priorities and the Constitution of Zimbabwe are the bedrock upon which the national Budget is formulated.
The rights and freedoms of the people of Zimbabwe will not be violated by the budget-making process.
Currently, as a Government, we are committed to the stakeholder-driven approach to national Budget formulation to improve the standards of living for the people of Zimbabwe.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Budget-making Processes Won't Violate Zimbabweans' Rights - Govt

Zimbabweans engaged in cross-border trade have expressed outrage after the Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube proposed to hike passport fees.
Presenting the 2024 National Budget on Thursday, 30 November, Ncube proposed to raise the fee for an ordinary passport from US$120 to US$200 and for an emergency passport from US$220 to US$300 with effect from 01 January 2024.
He said the additional revenue generated from the increase “will be ring-fenced towards road infrastructure development”.
Amid Zimbabwe’s economic challenges, many people survive by doing cross-border trade, and therefore, for them, a passport is a vital tool of their trade.
Thousands of unemployed Zimbabweans make a living by travelling, primarily to South Africa, Dubai and Turkey to buy goods unavailable or too expensive in Zimbabwe, for resale.
Mavis Chiangwa travels to South Africa regularly to buy spare parts for cars for sale in Harare.
She told <a href="https://www.bbc.com/news/world-africa-67587440">BBC</a> that although her passport is valid for another five years, the proposed hike is too much. She said:
<blockquote>
The 67% increase is too high and will make it difficult for those wanting to apply for new passports or those renewing.
</blockquote>
Journalist and political commentator Hopewell Chin’ono said the Zimbabwean Government “wants to make money from the misery of Zimbabweans who are running away from ZANU PF’s failed policies and corrupt rule.”
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabweans Furious Over Hike In Passport Fees

The Government plans to take over the running of third-party motor vehicle insurance with effect from April 2024.
Presenting the 2024 National Budget on Thursday, 30 November, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube said motorists were finding that insurance companies “have no motivation to compensate” for losses incurred because they were “profit-oriented”. He said:
<blockquote>
Third party insurance for the private and public motor vehicles was established under the Road Traffic Act in order to cushion against losses through road accidents and property damages.
Road traffic accidents are now ranked as the most prevalent cause of deaths and injuries across the globe.
Whilst insurance is an appropriate mechanism to cover liability costs, it has, however, proved difficult to enforce third party liabilities since private insurers are profit oriented, hence, have no motivation to compensate for the losses incurred.
In that regard, I propose that the government assumes third party motor vehicle insurance to private and public motor vehicles as is the case with other countries in the region.
</blockquote>
Ncube said the prescribed compensation limits provided through the Road Traffic Act are inadequate as they are restricted to death, permanent disability, and medical and funeral expenses. He said:
<blockquote>
I, therefore, propose to broaden the scope of third-party insurance cover under the Third-Party Motor Vehicle Scheme to include the following: medical benefits; rehabilitation; injury grants; funeral grants and loss of income.
The scheme will be operational with effect from April 1, 2024.
</blockquote>
Every vehicle on the road is required by law to have insurance, and the most common is the third party scheme.
Third party insurance provides coverage for damages or injuries caused by the policyholder to a third party, and does not cover damages to the policyholder’s own vehicle or injuries sustained by the policyholder.
Meanwhile, Ncube did not say anything about comprehensive insurance cover, the more expensive scheme which not only covers third-party liabilities but also the insurance holder’s vehicle.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Plans To Take Over Third-party Motor Vehicle Insurance

Former Finance Minister Tendai Biti, says the 2024 National Budget shows that the Government oblivious to the structural challenges facing the economy. <a href="https://x.com/BitiTendai/status/1730466254387822823?s=20">Biti posted on X</a>:
<blockquote>
The just presented 2024 Budget is a shocking parody of fascism, extraction, dishonesty, incompetence &amp; downright narcissism.
The 2024 Budget reflects a regime totally oblivious to the structural challenges facing the economy, the plight of the ordinary citizen, and the myriad issues affecting business.
The Budget betrays a lack of respect for economic fundamentals &amp; as a result, its prescriptions are a disastrous panoply of cruel extractive illegal if not unconstitutional measures.
This a budget that reflects a regime with total contempt for its subjects. The imposition of a massive array of taxes on a population mulcted by poverty and social challenges is reflective of this anti-citizen polity.
The increase in toll gate charges, passport fees, duty on soft drinks, vehicle registration, and fuel levy is narcissistic &amp; unnecessary.
The proposed Government takeover of Third Party insurance is clearly unconstitutional &amp; zany. The massive removal of VAT zero rating on all goods except exports &amp; medicines will hurt the poor &amp; elderly as will the removal of duty suspension on basic goods.
The powers given to the Zimbabwe Revenue Authority of temporarily shutting down businesses, seizing storage devices, raiding custody vaults at Banks, seizure of goods, and seizure of digital data, without due process are fascist &amp; unconstitutional. These measures can’t stand legal scrutiny.
The introduction of a 1 % tax on people’s homes above $100 000 is another ill-thought measure that will hurt innocent homeowners &amp; struggling working people. After all, capital gains, rates &amp; stamp duties are already being paid by homeowners.
Structurally, the Budget is technically unsound. Failure to express the same in USD makes the same lose any decency or credibility.
Further, the budget grossly hides the huge budget deficit created in 2023 which will be reflected in a condonation Bill that will come 2 years from now.
The Budget fails to address the exchange rate mess thus guaranteeing the continued existence of exchange rate arbitrage &amp; hyperinflation.
It fails to give relief to working people &amp; punishes the same through a vast array of punitive revenue measures. It will be a long winter of suffering.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"A Long Winter Of Suffering", Tendai Biti Comments On 2024 National Budget

Opposition legislator Fadzayi Mahere says the 2024 National Budget will harm small businesses after the Finance Minister proposed to reduce the Value Added Tax threshold to US$25 000 from US$40 000.
In his budget presentation on Thursday, 30 November, Ncube said only traders registered for VAT and with valid Tax Clearance Certificates can buy goods from manufacturers.
The VAT registration threshold will be cut from US$40 000 to US$25 000, or the local currency equivalent, starting in January 2024.
Posting on X, Mahere said this will result in a hike in the prices of goods and negatively affect overall demand. <a href="https://x.com/advocatemahere/status/1730463660043129273?s=20">She said</a>:
<blockquote>
The attack on small businesses in the new Budget is staggering.
The Value Added Tax threshold has now been reduced to US$25 000 from US$40 000.
In simple terms, this means that any small business that makes an average of $2100 per month or more will now have to register for VAT.
The impact on small businesses is that they will now have to increase the cost of their goods by 15% to enable them to collect the VAT.
The impact on a consumer is that the cost of goods will go up by at least 15% to accommodate this tax.
The impact overall is that demand will go down because the prices are too high.
Spending will go down and the economy will become even more comatose than it is now.
The VAT tax rate is at 15% despite calls from businesses for it to come down to 14.5%.
In a country where unemployment exceeds 85%, it is grossly irrational to propose a budget that taxes those trying to run a small business for survival.
The entire budget is anti-people. It’s a mess.
</blockquote>
However, responding to Mahere, one Mbonisi Siziba said nothing will change as producers already sell their goods with 15% VAT. He said:
<blockquote>
Manufacturers already sell their goods with 15% VAT, therefore tax is trickled down to the final consumer, nothing changes except that tuckshops will be charging the same prices as supermarkets.
VAT registration will also enable the SME to purchase directly from the manufacturer legally.
</blockquote>
Tafadzwa Marere concurred, saying small businesses don’t have to increase prices by 15%. He said:
<blockquote>
Not quite. They deduct the input tax on VAT on goods they buy so they don’t have to increase by 15%. If they use the same markup they should be fine.
What happens is that they start to have to remit that value added to Zimra. It’s only fair, isn’t it? Maybe the cost of compliance.
</blockquote>
Economa added:
<blockquote>
It doesn’t work like that Fadzi, the small businesses will be able 2 claim input tax on the purchases. If goods cost $10, the input tax is 1.30 which they claim from ZIMRA hence no need to increase by 15% coz the net cost is now $8.70. When they sell for $12 the tax is $1.57, therefore 0.27c tax.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mahere Says 2024 National Budget To Harm Small Businesses

Economic commentator Professor Gift Mugano has implored Parliament to reject Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube’s 2024 National Budget to save the majority of Zimbabweans from further impoverishment.
Ncube announced the proposed 2024 National Budget in Parliament on 30 November 2023. The budget will be debated and adopted or rejected by Parliament.
Responding to the budget proposals, Mugano urged ZANU PF and CCC MPs to reject it and request Ncube 
redo the budget and produce a pro-poor budget. <a href="https://x.com/gift_mugano/status/1730484283041534383?s=20">Wrote Mugano on X</a>:
<blockquote>
Parliament must reject the anti-people and anti-industry budget that was presented by Mthuli Ncube yesterday.
The proposed tax hikes and the move to exclude informal traders from the mainstream economy will bring more pain to the already impoverished people.
The decision to exclude traders without VAT certificates is very harsh and insensitive considering that more than 6 million people thrives on trading in the face of 85% formal unemployment and drought of economic opportunities.
These people, in their individual capacities, don’t have annual sales turnover of US$25 000 which is required to secure the VAT certificate.
This measure is expected to impact on the manufacturing sector negatively because the informal sector helps them to push volumes especially in manufacturing industries such as food and beverages (bread, ice cream, drinks, etc).
In the bread sector, for example, the volumes are pushed by vendors and tuckshops (not supermarkets) which are now supposed to be excluded from the bread value chain.
This will result in drastic fall in sales which has a net negative effect on production and jobs.
Is Mthuli Ncube aware of these dynamics and possibilities?
The following increases in taxes, levies and fees are a thorn in the flesh for an already struggling population:
– more than 100% increase in toll fees will push up bus fares and transport cost for the commuting public. The rural folks and pensioners will suffer the most as the timing of this policy measure is coinciding with a devastating drought – they will have to bear with these new measures over and above their struggle to put food on the table.
– introduction of levies on beverages with sugar is again insensitive as these are the drinks of the poor and our children.
– passport and vehicle number plates fees hikes are again schemes put in place to milk the poor.
– the US$300 will be taxed come January 2024 – so insensitive to the underpaid civil servants who were expected a salary hike.
– wealth tax reminds of the Rhodesian government which introduced hut tax and Mthuli Ncube admires the very same exploitative tax regime and introduce it again in “independent” Zimbabwe.
If Parliament is going to act in the best interest of the public, they must reject this budget and request Mthuli Ncube redo the budget and produce a pro-poor budget.
It is my prayer that ZANU PF and CCC MPs unite on this one and reject this useless budget.
If ZANU PF uses their majority vote to support this useless budget and overpower CCC by virtue of their numbers they are voting for more poverty for their rural constituencies where they got most of their votes.
In the same way, they are punishing the 6 million people in the informal sector as they will be endorsing their exclusion from the manufacturing sector value chains.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Gift Mugano Urges Parliament To Reject Mthuli's 2024 National Budget

Finance, Economic Development and Investment Promotion Minister Mthuli Ncube said that he will prioritise stabilising the Zimbabwe dollar when he announces the 2024 National Budget later this month.
Ncube told <a href="https://www.sundaynews.co.zw/government-to-prioritise-zimbabwe-dollar-stability/">State media</a> that the $44 trillion 2024 national budget will anchor the next phase of the National Development Strategy 1. Said Ncube:
<blockquote>
The budget is running under the theme of consolidating economic transformation. The economy has gone through considerable transformation over the last five years.
So, under this budget of about $44 trillion, we want to target specific areas.
The first area is stability; the budget must speak to stability, such as currency stability, which we need in order to develop.
The second is infrastructure development, right across water infrastructure, roads, energy and particularly rail infrastructure.
In this budget, we will allocate funds for the resuscitation of rail infrastructure.
</blockquote>
He said funds will also be appropriated for value addition in mining, agriculture and manufacturing.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

$44 Trillion 2024 National Budget To Prioritise Zim Dollar Stability - Mthuli

FULL TEXT: Biti Submissions For The 2023 National Budget Debate

Finance and Economic Development Minister Mthuli Ncube said that the government has no means to fund demands by ministries in the 2023 national budget.
Ncube said this in the National Assembly on Tuesday following complaints by MPs that government departments were severely underfunded.
Various reports by Parliamentary Portfolio Committees on the 2023 national budget had indicated that ministries were underfunded. Ncube said:
<blockquote>
I have listened carefully to all presentations by portfolio committees. There is not a single portfolio committee that (is happy with the budget allocation for the ministry that they supervise.)
They all said it is inadequate, and that is what it is frankly. It may be inadequate, but we have to live within our means.
You will notice that I presented a budget of $4.2 trillion, but the bids were three times this figure.
Clearly, we cannot support that kind of expenditure request. We just do not have the resources.
The resources that we can reliably generate are just over $4 trillion.
We have always said, in terms of the Public Debt Management Act, debt should not go above 70% of gross domestic product (GDP) and we are straining ourselves not to breach that because the higher expenditure means that we have to borrow more, and we end up breaching the hurdle and that is not good for us.
On the issue of underfunding — that we are not giving ministries what they request for — ministries are always requesting three times the revenue that the economy can generate.
This economy is stuck somewhere at around 80% of the GDP in terms of revenue to GDP ratio. That is all it can afford and you cannot extend beyond that 80% of GDP.
It is not even underfunding. We are funding what we are able to fund with the resources we have.
Ncube also explained that Treasury has been disbursing budgeted resources to ministries and government departments very late due to the current cash budgeting system being implemented.
</blockquote>
This means that government spending is restricted to revenue collected only. Said Ncube:
<blockquote>
You can only spend what you have collected. Some put it as ‘you eat what you have killed’.
You cannot eat more than what you have killed unless you borrow someone’s kill. 
We have to do this with no recourse to the central bank.
</blockquote>
In 2019, the government stopped borrowing from the Reserve Bank of Zimbabwe in order to comply with the Public Finance Management Act. | <a href="https://www.newsday.co.zw/local-news/article/200005258/we-are-broke-says-mthuli">NewsDay</a>

"We Have To Eat What We Kill" - Mthuli Responds To MPs' Demands For More Funds

Parliament has said the ZWL$474.7 billion (11.2%) of the ZWL$4.5 trillion 2023 national budget allocated to the Ministry of Health and Childcare is inadequate.
Presenting the report by the Parliamentary Portfolio Committee on Health and Child Care on the 2023 health budget, acting chairperson of the committee Nicola Watson said:
<blockquote>
This implies that the health sector will continue to significantly rely on out-of-pocket expenditures and donor assistance.
This is not sustainable given the low disposable incomes among the public and the unpredictability of donor support.
</blockquote>
Watson said the 11.2% allocation towards health was below the 15% budget allocation stipulated by the Abuja Declaration.
In 2001, the African Union (AU) member states signed the Abuja Declaration, thereby pledging to allocate at least 15% of their national budgets each year to improve their healthcare systems. Said, Watson:
<blockquote>
All the hospitals across the country were grossly underfunded in the 2023 national budget.
Central hospitals received $113.4 billion, while provincial hospitals received $35.02 billion.
This level of financing will leave them incapacitated to deliver services.
It is of concern that there is gross under-investment in medicines. It is now normal for patients to buy basic medicines like painkillers; and the lack of medical supplies at hospitals has seen the mushrooming of pharmacies that are fleecing patients of their hard-earned cash.
The 2023 national budget is grossly inadequate to address the massive brain drain.
</blockquote>
The committee also accused the government of failing to adequately remunerate health workers resulting in brain drain. It said:
<blockquote>
Health workers continue to earn salaries in local currency, yet they pay for expenses in United States dollars.
Family health was allocated $12.09 billion and this constitutes only 37% of its bid.
This is grossly inadequate given the level of maternal deaths and health needs at hospitals.
</blockquote>
| <a href="https://www.newsday.co.zw/local-news/article/200004754/health-sector-faces-doom-mps">NewsDay</a>

All Hospitals "Grossly Underfunded In The 2023 National Budget" - MPs

Local commentators on health matters say the the$473.8 billion budget allocation towards the provision of health care services announced by Finance and Economic Development Minister Mthuli Ncube is not enough to cater to the sector’s needs.
Ncube announced a $4.5 trillion budget on Thursday, with the health allocation constituting 11% of the total budget.
Community Working Group on Health executive director Itai Rusike said:
<blockquote>
The health budget remains grossly inadequate to fund the critical needs in the health sector.
The current health financing model remains unsustainable as it heavily relies on external financing as well as out-of-pocket spending.
In spite of the huge external support from development partners, there is still a huge financing gap in the health sector in the country which calls for greater innovation and commitment by the government to sustainably address it.
</blockquote>
Dental Private Practitioners Association of Zimbabwe president Johannes Marisa said:
<blockquote>
The health sector budget is an improvement from last year but of course when you are benchmarking with the Abuja Declaration you still realise that it falls short of the stipulated 15%.
We hope the budget is going to address the mass brain drain that is underway in Zimbabwe where we are losing experienced and skilled workers to greener pastures.
</blockquote>
In his 2023 national budget presentation, Ncube acknowledged that the amount allocated to health was well below the 15% stipulated by the Abuja Declaration. Said Ncube:
<blockquote>
In 2023, the budget has set aside 11% of total expenditures towards the health sector notwithstanding financial constraints, Government is committed to the provision of quality health services, as evidenced by the ongoing construction and rehabilitation of health facilities.
In 2023, the budget has set aside 11% of total expenditures towards the health sector and the objective is to eventually meet the Abuja Declaration of 15%.
This is necessary to attain Vision 2030 of becoming an upper middle-income economy.
In 2023, the sector is projected to receive US$212,9 million from development partners towards the same areas.
</blockquote>
| <a href="https://www.newsday.co.zw/health/article/200004115/health-budget-insufficient">NewsDay</a>

"Health Budget Inadequate"

Finance and Economic Development Minister Mthuli Ncube has pledged to fund the recruitment of 7 000 teachers in 2023.
The majority of the teachers will be for Early Child Development (ECD), Grade One and Two classes.
In his 2023 national budget presentation in Parliament on Thursday, Ncube said in addition to the recruitment of 7 000 teachers, incentives will be offered to educators to retain their skills. He said:
<blockquote>
There is a growing demand for teachers to ensure the delivery of quality education, especially at the infant level.
In 2023, the budget has, therefore, made a provision for the recruitment of an additional 7 000 teachers.
Furthermore, support will be extended to teacher training, with relevant skills for deployment in marginalised areas.
This will be complemented by incentives to attract and retain such skills.
</blockquote>
In June, Primary and Secondary Education Minister Evelyn Ndlovu said the country had a shortfall of 25 000 teachers.
She also said the country has an establishment of 136 000 teachers.

Govt Says It Will Recruit 7 000 Teachers In 2023

Treasury boss Mthuli Ncube on Thursday tabled a ZWL$4.5 trillion 2023 budget against ZWL$8.7 bids from ministries and government departments.
Addressing parliamentarians at the new Parliament building in Mt Hampden, near Harare, Ncube said ministries knew the budget funding ceiling but chose to ignore it.
He urged ministries to not only adhere to the Budget Strategy Paper and Budget Call Circular but to also prioritise their programmes. He said:
<blockquote>
During the budget formulation processes, line Ministries submitted total bids of over ZWL$8.7 trillion, more than double the available envelope, presenting an allocation challenge.
This notwithstanding, a Budget Strategy Paper and Budget Call Circular with indicative ceilings for each MDA and an overall indicative available revenue collection of ZWL$3.4 trillion.
Going forward, line Ministries are required to adhere to BSP and Budget Call Circulars ceilings when formulating expenditure proposals.
This requires line Ministries to rigorously prioritise their projects and programmes.
</blockquote>
Ncube said the bulk of the funds in the 2023 budget has been allocated to ministries and independent Commissions. He said:
<blockquote>
With regards to 2023 Budget Vote allocations, line Ministries and Independent Commissions have been allocated a total of ZWL$3.7 trillion, whilst Constitutional and Statutory Appropriation have been allocated ZWL$532.6 billion and loan repayments ZWL$248.6 billion bringing the total Budget to ZWL$4.5 trillion.
</blockquote>
Ncube allocated only 18.5% of the budget to the educator sector which is lower than the 20% stipulated in the Dakar Declaration on Education. | <a href="https://openparly.com/zw4-5-trillion-budget-mthuli-ncube-castigates-ministries-for-wanting-more/?">OpenParly</a>

2023 National Budget: Mthuli Ncube Criticises Ministries For Wanting More

Finance and Economic Development Minister Mthuli has proposed to raise value-added tax (VAT) from the current 14.5 percent to 15 percent with effect from 1 January 2023.
Presenting his ZWL$4.2 trillion (about US$6.5 billion) budget on Thursday, at the new Parliament building in Mt Hampden, near Harare, Ncube said on average, SADC countries charge 16 percent VAT. He said:
<blockquote>
Zimbabwe charges a comparatively lower rate of 14.5 percent. The VAT rate was reduced from 15 percent with effect from January 1, 2020, in order to support households during the peak period of the COVID-19 pandemic… I propose to reinstate the VAT rate to the previous rate of 15 percent with effect from January 1, 2023.
</blockquote>
Consumers pay VAT when they buy food, and pay for water, electricity, and other services.
Ncube also removed the suspension of duty on basic food items such as rice, maize meal, bath soap, cooking oil and maize meal amongst others. He said:
<blockquote>
The suspension of duty, which expired on November 16, 2022, will not be extended.
The government will, however, monitor prices of basic commodities with a view to ensuring responsible pricing and affordability, failure of which the suspension will be reinstated.
</blockquote>
Ncube, however, said he was reducing the Intermediate Money Transfer Tax (IMTT) on domestic foreign currency transfers from 4 percent to 2 percent.
Meanwhile, former Finance Minister Tendai Biti described the restoration of duties on basic commodities particularly while approaching a festive season as “equally sadistic and bankrupt.” | <a href="https://www.zimlive.com/2022/11/ncube-raises-vat-restores-duty-on-basics-in-sadistic-and-bankrupt-2023-budget/">ZimLive</a>

Ncube Raises VAT, Restores Duty On Basic Food Items

The government has set aside a total of ZWL$76 billion for the holding of general elections in 2023.
Presenting the 2023 national budget at the new Parliament Building in Mt Hampden, Finance and Economic Development Minister, Mthuli Ncube, said the funds will cover voter registration, voter inspection, and actual election conduct, among other election-related expenses. He said:
<blockquote>
Mr. Speaker Sir, the country will hold harmonised elections in 2023 as enshrined in the Constitution.
Preparations for the plebiscite have already commenced, which included the delimitation exercise, voter registration, and voter’s role inspection.
The 2023 National Budget is setting aside ZWL$76 billion for the remaining activities covering voter registration, voter inspection, and actual election conduct, among others.
</blockquote>
This week, the European Union (EU) unveiled €6 million to support the holding of elections in Zimbabwe.
Meanwhile, Ncube allocated $331.1 billion to Defence, $293 billion to the Home Affairs ministry, and $161.7 billion to the Office of the President and Cabinet (OPC), which houses the Central Intelligence Organisation. He said:
<blockquote>
The 2023 national budget has set aside resources towards the capacitation of the uniformed forces with accommodation, rations and equipment, as well as improve their remuneration; both monetary and non-monetary, in order to fight crime, maintain law and order, as well as general peace and security.
</blockquote>

ZWL$76 Billion Set Aside For 2023 Elections

CCC vice president, Tendai Biti, has said Finance and Economic Development Minister Mthuli should have dollarised the economy, instead of announcing a Zimbabwe dollar-indexed 2023 national budget.
On Thursday, Ncube proposed a ZWL$4.5 trillion budget, which Biti, a former Finance Minister, said ought to have been indexed in US dollars. He said:
<blockquote>
A very cruel budget when you consider the increase in VAT to 15%, but I think the fundamental problem is that with inflation of 268% and the fact that most government revenues are now pegged in US dollars, this budget to be meaningful, ought to have been indexed in US dollars.
In our view, he should simply have announced a US$4 billion budget. If you look at the figures, it is a $4.2 trillion budget, which translates to US$4 billion at an exchange rate of the used USD1 to ZW$100.
The failure to pay civil servants in US dollars is a complete disaster. He has reduced the rate of IMET tax from 4% on US dollars to 2%.
He just needed to scrap the intermediate money transfer altogether, but as you can see, it is an anti-people budget.
</blockquote>
Biti said the budget is anti-people and is premised on wrong and faulty assumptions. He said:
<blockquote>
We find it a very anti-people budget premised on very faulty assumptions that the country will have a good rainfall season and solid international commodity prices; his (Ncube’s) assumption is that we will have power (electricity) next year, which is all wrong assumptions and faulty.
We already know the challenges of power (electricity), the global challenge that almost all economies are in shrinkage. It’s a pipe dream.
In simple terms, this should have been a budget in USDs, he should have dollarised the budget, and he should have floated ZW$. Ncube should have reduced the interest rate from 200% to 20%.
</blockquote>
Biti argued that Ncube should have removed export surrender requirements and the foreign currency auction system.
He also warned the VAT increase will cause price increases as the tax component is unprogressive and affects both the rich and poor. | <a href="https://www.newzimbabwe.com/2023-budget-cruel-and-anti-people-says-biti-dismisses-fiscal-plan-as-power-retention-project-as-aimed-at-helping-zanu-pf-in-next-years-elections/">NewZimbabwe.com</a>

Biti Says 2023 National Budget Is Anti-people

The Ministry of Finance and Economic Development released only one-third of the funds allocated to the Ministry of Health and Childcare in the 2022 national budget.
This was revealed by the Health Minister, Vice President Constantino Chiwenga while addressing a 2023 Parliament pre-budget seminar in Harare on Monday.
Chiwenga said the underfunding of the health sector resulted in his ministry managing to procure only 14% of the required medicines. He said:
<blockquote>
The 2022 annual budget for medicines and health facilities was $15 billion, and only $5 billion was released.
The comment from the public was that people were failing to access the most basic services, and their major concern was the need for critical equipment and services such as maternity.
The year 2022 faced cash challenges and this led to the inadequacy of critical medical supplies.
However, with the funds that we have availed, 14% of the required medicines were procured.
… The ministry takes note of the state of the infrastructure at some of the health institutions.
To address this, the ministry was allocated $18 billion, however, only 2,8 billion was disbursed.
I want to clarify this, for the health posts, we should have 1 700 ward-based health facilities if we are to give attention in terms of healthcare to every Zimbabwean.
</blockquote>
Zimbabwe’s per capita (per person) spending on health is said to have dropped from US$45 in 2021 to US$20 this year.
The World Health Organisation recommends a per capita health expenditure of at least US$84 per year.
Meanwhile, Zambia’s 2022 per capita spending on health is US$85, South Africa (US$570 per person), and Malawi (US$35). | <a href="https://www.newsday.co.zw/health/article/200002559/treasury-starved-hospitals-of-medicines-chiwenga">NewsDay</a>

Treasury Disbursed Only One-third Of Health Ministry's Budget Allocation

Finance and Economic Development Minister <a href="http://www.pindula.co.zw/Patrick_Chinamasa">Patrick Chinamasa</a> is expected to present the 2017 national budget early next month. The ministry’s permanent secretary Mr Willard Manungo said the process of interrogating the submissions from different stakeholders would be complete soon.
Speaking to The Chronicle, Manungo said,
<blockquote>At the moment we are interrogating the submissions from various Government departments and ministries. We are looking forward to have the budget presented either at the end of the month or early December.</blockquote>
Manungo said the Parliamentary pre-budget seminar that was concluded over the weekend, was aimed at growing the economy through enhancing measures to grow revenue generation. He said the Government, in the upcoming national budget, would also focus on growing revenue generation through Diaspora remittances.
More: <a href="http://www.chronicle.co.zw/minister-to-present-2017-national-budget-next-month/">Chronicle</a>

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