By Staff Reporter
Officials from Zimbabwe’s Ministry of Finance faced sharp criticism from the Parliamentary Portfolio Committee on Budget and Finance on Monday after they arrived unprepared for this year’s budget consultations.
The officials, led by Acting Chief Director Bernard Mupuriri, were unable to provide the country’s current Gross Domestic Product (GDP) figures, an essential element for budget planning.
The Ministry delegation, which included representatives from ZIMRA and ZIMSTAT, presented the Ministry’s bid for the 2025 national budget, revealing a budget over-expenditure of around 60% from January to September 2024.
However, when Committee Chairperson Clemence Chiduwa asked for the country’s GDP figures, none of the officials could provide an immediate response.
This failure led to frustrations among committee members, with some suggesting postponing the meeting.
Finance Secretary George Guvamatanga, who could have addressed the issue, was absent, as he was reportedly out of the country on state business.
Chiduwa highlighted the importance of knowing the GDP, stating: “The revenue target is a percentage of the GDP. The government’s ability to collect revenue depends on our understanding of the GDP, but it seems no one is ready to provide an answer.”
He added, “We need answers on this because the ministry’s capacity to collect revenue, which has significant implications, is tied to GDP.”
Dzivaresekwa legislator and Citizens Coalition for Change (CCC) Chief Whip Edwin Mushoriwa expressed concern over the ministry’s lack of preparation.
“We are discussing the national budget, and the absence of basic GDP knowledge sets a very bad precedent,” charged Mushoriwa
The committee warned that such oversights would not be tolerated in future budget discussions.
“When ministry officials come to Parliament, they should be fully prepared to answer all questions. It’s unacceptable for them to be calling offices for figures during a meeting,” Chiduwa said.
When pressed further, Kudakwashe Zata, the Acting Finance Director, eventually provided a rough estimate of the GDP, stating that the 2024 GDP was projected at ZiG 96.9 trillion, down from ZiG 133 trillion at the end of 2023.
However, Zata’s response left lawmakers unsatisfied, especially regarding clarity on the figures in US dollars, given Zimbabwe’s largely dollarized economy.
Mbizo legislator Corban Madzivanyika (CCC) also raised concerns about the ministry’s budget proposals, noting that while the ministry requested ZiG 3.753 billion for the 2025 budget, the required ceiling was ZiG 14 billion.
This includes salaries for government employees, which have become a growing concern amid economic challenges.
The committee expressed frustration over the lack of collaboration between the ministry and Parliament in determining key macroeconomic figures.
“Zimbabwe is 85% dollarized. We need accurate figures in US dollars to assess whether the data presented is sustainable,” Madzivanyika said.
Further criticism came regarding the ministry’s failure to allocate funds on time. Madzivanyika noted that the Ministry of Primary and Secondary Education had struggled to use its allocated budget for the year, and he blamed the Finance Ministry for causing delays in disbursements.
In response, Zata requested more time to provide accurate answers and sought Parliament’s support in addressing the ministry’s challenges.
He also appealed for an increase in the budget ceiling, noting that some sectors, such as financial supervision, were struggling to meet their needs within current budget limits.
The committee stressed the need for transparency and proper planning as the country approaches the 2025 budget, calling for better collaboration between the Finance Ministry and Parliament moving forward.
