Government allocates US$310 million for devolution

Minister of Minister of Finance & Economic Development has announced that it has allocated US$310 million for the implementation of devolution. The move has been welcomed by Zimbabweans who are keen on enjoying the benefts of their local resources as spelt out in the constitution.
In 2013 the MDC led by Welshman Ncube was the key champion of devolution with their campaign running under the banner: Devolution is our new revolution.

We publish below an except of the speech which Ncube  gave at parliament on Thursday:
The 2019 National Budget seeks to operationalise support to Provinces on the basis of Section 264 of the Constitution  pertaining to provision of 5% of Government revenues to  Provincial Councils.
219. An estimated US$310 million in fiscal transfers is earmarked  for support to Provincial Councils for 2019.  As spelt out in the Transitional Stabilisation Programme,  decentralisation is a key strategy for fair and just governance.

All provinces should be able to plan and implement their economic growth and development using their factor  endowments, with Central Government contributing through the 5% allocation annually.

For the 2019 Financial Year, and in order to distribute the amount among Provinces, an interim formula will be used, which is simplistic and objective comprising the following components:-

•  Population profile;
•  Poverty profile; and
•  Infrastructure quality and deficit.

To operationalise Devolution, Government has already approved the Principles of the Provincial Councils and Administration Amendment Bill, which spells out the mechanisms of decentralisation and devolution.

Actual allocations for 2019 will require Cabinet approval at the beginning of the financial year, ensuring that the allocations target addressing pockets of marginalisation in Provinces and Districts.

Mr. Speaker Sir, Government is cognisant of the urgent need to develop urban infrastructure, especially water & sanitation and roads.
 
Therefore, Government will facilitate stronger partnership among relevant departments, respective local authorities and development partners in addressing infrastructure deficiency in urban areas.

Treasury, is also embarking on a programme to enhance financial and accounting capacity of local authorities and the Provincial Councils, to ensure transparency and accountability in the management of the public resources.

The Devolution strategy also embraces initiatives to facilitate establishment of companies in various districts, in line with the thrust to enhance production in respective provinces, with the long established Growth Points being epicentres of this developmental thrust.

As per the undertaking in the Transitional Stabilisation Programme, ZIMSTAT will be seized with production of socio economic statistics that will underpin assessment of the various Provinces and Local Authorities contribution to the overall GDP, including spatial GDP figures.
 Mr Speaker Sir, I propose to allocate US$179.9 million to the Ministry of Local Government, Public Works and National Housing.

 This allocation is over and above the US$310 million targeted under the fiscal transfer to Provincial Councils and Local Authorities, I indicated earlier.