News / National
Mthuli Ncube's Ministry fails to provide Zimbabwe's basic economic data
23 Oct 2024 at 15:58hrs | Views
Officials from Zimbabwe's Ministry of Finance faced sharp criticism on Monday during a Parliamentary Portfolio Committee on Budget and Finance meeting after arriving unprepared for the 2025 budget consultations. The delegation, led by Acting Chief Director Bernard Mupuriri, struggled to provide basic economic data, including the country's current Gross Domestic Product (GDP) figures - crucial for effective budget planning.
According to 263Chat, the Ministry's delegation, which included representatives from the Zimbabwe Revenue Authority (ZIMRA) and the Zimbabwe National Statistics Agency (ZIMSTAT), presented the Ministry's bid for the 2025 national budget. It revealed a budget over-expenditure of around 60% between January and September 2024. However, when Committee Chairperson Clemence Chiduwa requested Zimbabwe's GDP figures, none of the officials could provide an immediate answer, causing frustration among committee members.
"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," Chiduwa remarked, stressing the significance of accurate GDP data for effective financial planning.
The absence of Finance Secretary George Guvamatanga, who was reportedly on state business abroad, compounded the issue. Dzivaresekwa legislator and Citizens Coalition for Change (CCC) Chief Whip Edwin Mushoriwa condemned the Ministry's lack of preparedness, stating, "We are discussing the national budget, and the absence of basic GDP knowledge sets a very bad precedent."
Committee members also suggested postponing the meeting, citing the Ministry's failure to meet basic expectations for such a critical discussion.
Eventually, Acting Finance Director Kudakwashe Zata provided an estimate, stating that Zimbabwe's 2024 GDP was projected at ZiG 96.9 trillion, down from ZiG 133 trillion in 2023. However, his response left lawmakers unsatisfied, especially given Zimbabwe's largely dollarized economy. Mbizo legislator Corban Madzivanyika (CCC) emphasized the need for accurate figures in US dollars, noting, "Zimbabwe is 85% dollarized. We need accurate figures in US dollars to assess whether the data presented is sustainable."
In addition to the GDP data issue, Madzivanyika raised concerns about the Ministry's budget proposals. He pointed out that while the Ministry requested ZiG 3.753 billion for the 2025 budget, the required ceiling was ZiG 14 billion. He also criticized delays in disbursing funds, which had hampered other ministries, such as the Ministry of Primary and Secondary Education, in utilizing their allocated budgets.
The committee expressed dissatisfaction with the Ministry's lack of coordination with Parliament in determining key macroeconomic figures, warning that such oversights would not be tolerated in future consultations.
In response, Zata requested more time to provide accurate data and appealed for parliamentary support in addressing the Ministry's financial challenges. He also asked for an increase in the budget ceiling to address the needs of struggling sectors, such as financial supervision.
As Zimbabwe approaches the 2025 budget, the committee underscored the need for better transparency and collaboration between the Ministry of Finance and Parliament, stressing the importance of proper planning to address the country's ongoing economic challenges.
According to 263Chat, the Ministry's delegation, which included representatives from the Zimbabwe Revenue Authority (ZIMRA) and the Zimbabwe National Statistics Agency (ZIMSTAT), presented the Ministry's bid for the 2025 national budget. It revealed a budget over-expenditure of around 60% between January and September 2024. However, when Committee Chairperson Clemence Chiduwa requested Zimbabwe's GDP figures, none of the officials could provide an immediate answer, causing frustration among committee members.
"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," Chiduwa remarked, stressing the significance of accurate GDP data for effective financial planning.
The absence of Finance Secretary George Guvamatanga, who was reportedly on state business abroad, compounded the issue. Dzivaresekwa legislator and Citizens Coalition for Change (CCC) Chief Whip Edwin Mushoriwa condemned the Ministry's lack of preparedness, stating, "We are discussing the national budget, and the absence of basic GDP knowledge sets a very bad precedent."
Committee members also suggested postponing the meeting, citing the Ministry's failure to meet basic expectations for such a critical discussion.
In addition to the GDP data issue, Madzivanyika raised concerns about the Ministry's budget proposals. He pointed out that while the Ministry requested ZiG 3.753 billion for the 2025 budget, the required ceiling was ZiG 14 billion. He also criticized delays in disbursing funds, which had hampered other ministries, such as the Ministry of Primary and Secondary Education, in utilizing their allocated budgets.
The committee expressed dissatisfaction with the Ministry's lack of coordination with Parliament in determining key macroeconomic figures, warning that such oversights would not be tolerated in future consultations.
In response, Zata requested more time to provide accurate data and appealed for parliamentary support in addressing the Ministry's financial challenges. He also asked for an increase in the budget ceiling to address the needs of struggling sectors, such as financial supervision.
As Zimbabwe approaches the 2025 budget, the committee underscored the need for better transparency and collaboration between the Ministry of Finance and Parliament, stressing the importance of proper planning to address the country's ongoing economic challenges.
Source - 263chat
