eBusiness Weekly
HARARE – Eight ministries have thrown in 2020 national budget bids of a combined $112 billion, far outstripping what government is capable of providing, Finance and Economic Development Minister, Mthuli Ncube has said.
Government is preparing next year’s budget which is due for presentation shortly.
And to get Parliament’s input into the financial plan, legislators recently held a three-day workshop in the resort town of Victoria Falls where a number of issues were raised.
In response to the huge financing demands from ministries, Prof Ncube said government would only be able to increase its 2020 budget by at least 30 percent from the current in line with revenue expected to be generated next year.
“The budget ceilings that have been given by Treasury, are therefore, derived from the anticipated resources envelope from taxes and what we can borrow from the market without destabilising the economy,” Prof Ncube said.
“We also need to be mindful that unrestrained expenditures financed through unsustainable means are the major source of economic instability we are battling today.”
Out of the more than 20 ministries, requirements of only eight which include defence, health, home affairs, local government and transport, have already overshot the budget.
Prof Ncube called for efficient and result-focused utilisation of resources as government was financially hard pressed.
“Let me also mention that even in advanced economies, resources are never enough to meet yearly requirements,” he said.
“What is critical is that we become more results focused so that allocated resources are used efficiently and effectively, as well as matched with performance, in line with the principles of Results Based Budgeting.” – New Ziana
