News / National
Bulawayo pegs 2025 budget at US$309m
30 Sep 2024 at 07:44hrs | Views
The Bulawayo City Council (BCC) has unveiled a proposed budget of US$309 million for 2025, marking a 17% increase from the US$264 million budget for 2024. The proposal, presented by the Finance and Development Committee chairperson Mpumelelo Moyo, emphasizes the city's theme of "Consolidating Economic Transformation," aligning with its strategy of "Renewal, Stabilisation, and Growth."
The 2025 budget allocates US$227 million, or 74% of the total, for revenue, while the capital budget stands at US$82 million, constituting 26%. Notably, this capital allocation reflects a decrease from the US$96 million budgeted for 2024, which accounted for 36% of the total budget.
During the budget presentation on Friday, Moyo highlighted that this year, the council engaged in extensive public consultations, conducting 41 meetings that attracted 2,320 participants, a significant increase compared to last year, which was subdued due to elections. The consultations ran from September 13 to 26, offering residents the opportunity to contribute their views on budget priorities.
One of the critical issues addressed in the proposed budget is the worsening water shortage crisis in the city. To tackle this, the BCC plans to suspend free water services, with provisions to identify and subsidize disadvantaged residents. Moyo explained that the continuous low rainfall and diminishing water levels at supply dams necessitated this difficult decision.
"In light of the current water rationing and shortages, it is no longer feasible to offer free water," Moyo stated, adding that a new water levy of US$1 for domestic properties and US$10 for non-domestic properties will be introduced to fund the rehabilitation of water infrastructure.
Despite some resistance, Moyo reported that 62% of attendees voted against the removal of free water, while 62.5% supported the roads levy, and 65% favored the water levy. The proposed budget aims to address the pressing needs for water infrastructure while ensuring essential services continue to operate.
In terms of expenditure, Moyo detailed that salaries will account for US$108.78 million (35%), general expenses will reach US$70.15 million (23%), repairs will take up US$10.16 million (3%), and maintenance costs will amount to US$37.92 million (12%). The total planned expenditure is projected at US$308.69 million.
To finance the capital projects, Moyo indicated that funds would be sourced through external borrowing, revenue contributions, Zimbabwe National Roads Administration (Zinara) funding, and devolution funds. The council is anticipating a recurrent grant of ZWG28 million and a capital grant of ZWG130 million based on previous allocations.
Moyo expressed concern over rising inflation rates in Bulawayo, noting that the annual inflation rate stood at 108.54% in August 2024, surpassing the national rate of 106.65%. Similar trends were observed in Zimbabwean dollar (ZWG) inflation, with Bulawayo's rate at 101.4% compared to national figures.
In reviewing the 2024 budget, Moyo noted that it was created amidst significant exchange rate volatility, with the rate soaring from Z$6,715 at the time of approval to Z$24,261 by April 2024. This economic instability has necessitated ongoing adjustments to the city's financial strategies.
As the BCC prepares for the upcoming fiscal year, officials are urging residents to remain engaged in budget discussions to ensure the city can effectively address its pressing challenges, particularly in water management and infrastructure development.
The 2025 budget allocates US$227 million, or 74% of the total, for revenue, while the capital budget stands at US$82 million, constituting 26%. Notably, this capital allocation reflects a decrease from the US$96 million budgeted for 2024, which accounted for 36% of the total budget.
During the budget presentation on Friday, Moyo highlighted that this year, the council engaged in extensive public consultations, conducting 41 meetings that attracted 2,320 participants, a significant increase compared to last year, which was subdued due to elections. The consultations ran from September 13 to 26, offering residents the opportunity to contribute their views on budget priorities.
One of the critical issues addressed in the proposed budget is the worsening water shortage crisis in the city. To tackle this, the BCC plans to suspend free water services, with provisions to identify and subsidize disadvantaged residents. Moyo explained that the continuous low rainfall and diminishing water levels at supply dams necessitated this difficult decision.
"In light of the current water rationing and shortages, it is no longer feasible to offer free water," Moyo stated, adding that a new water levy of US$1 for domestic properties and US$10 for non-domestic properties will be introduced to fund the rehabilitation of water infrastructure.
Despite some resistance, Moyo reported that 62% of attendees voted against the removal of free water, while 62.5% supported the roads levy, and 65% favored the water levy. The proposed budget aims to address the pressing needs for water infrastructure while ensuring essential services continue to operate.
In terms of expenditure, Moyo detailed that salaries will account for US$108.78 million (35%), general expenses will reach US$70.15 million (23%), repairs will take up US$10.16 million (3%), and maintenance costs will amount to US$37.92 million (12%). The total planned expenditure is projected at US$308.69 million.
To finance the capital projects, Moyo indicated that funds would be sourced through external borrowing, revenue contributions, Zimbabwe National Roads Administration (Zinara) funding, and devolution funds. The council is anticipating a recurrent grant of ZWG28 million and a capital grant of ZWG130 million based on previous allocations.
Moyo expressed concern over rising inflation rates in Bulawayo, noting that the annual inflation rate stood at 108.54% in August 2024, surpassing the national rate of 106.65%. Similar trends were observed in Zimbabwean dollar (ZWG) inflation, with Bulawayo's rate at 101.4% compared to national figures.
In reviewing the 2024 budget, Moyo noted that it was created amidst significant exchange rate volatility, with the rate soaring from Z$6,715 at the time of approval to Z$24,261 by April 2024. This economic instability has necessitated ongoing adjustments to the city's financial strategies.
As the BCC prepares for the upcoming fiscal year, officials are urging residents to remain engaged in budget discussions to ensure the city can effectively address its pressing challenges, particularly in water management and infrastructure development.
Source - newsday
