News / National
Zimbabwe govt posts ZiG3,4bn budget deficit
07 Nov 2024 at 07:13hrs | Views
GOVERNMENT has reported a ZiG3,4 billion budget deficit for the first nine months of the year owing to inflationary pressures and growing expenditure.
Finance, Economic Development and Investment Promotion minister Mthuli Ncube said this during the 2025 pre-budget seminar underway in Bulawayo.
"During the first nine months of the year, cumulative revenue collections amounted to ZiG63,1 billion, against cumulative expenditures of ZiG66,5 billion, resulting in a budget deficit of ZiG3,4 billion," Ncube said.
"The deficit is expected to remain with a macroeconomic convergence target of 3% of gross domestic product by year-end as well as in 2025."
Treasury reported a ZiG0,9 billion expenditure overrun, with cumulative spending reaching ZiG66,5 billion against a target of ZiG65,6 billion.
"Cumulative expenditure from January to September 2024 amounted to ZiG66,5 billion, against a target of ZiG65,6 billion resulting in an expenditure overrun of ZiG0,9 billion," he said.
"From January to September 2024, Treasury has consistently disbursed funds, ensuring that ministries, departments and agencies receive the necessary budget support for their operations."
"During the same period, we have utilised 75,9% of the approved budget."
He noted that most ministries had utilised their approved budgets, with the Transport ministry overspending.
"While most ministries, departments and agencies have maintained their budget utilisation within the approved limits, a few exceptions have exceeded their allocated funds," he said.
"One such example is the Transport and Infrastructural Development ministry and we are aware of the infrastructural developments that are currently underway."
Ncube also highlighted that he will prioritise fiscal and monetary policies to stabilise the economy when he announces the 2025 budget later this month.
"Government will prioritise fiscal and monetary policies to support the stability of the domestic currency, the ZiG, and a stable macro-economic environment," he said.
"Among other interventions, the Liquidity Management Committee will play a greater role in co-ordinating fiscal and monetary measures that effectively manage liquidity injections into the economy.
"Additionally, a comprehensive exercise to restructure the terms and conditions of the national debt will be implemented in order to address the unsustainable high servicing costs."
Finance, Economic Development and Investment Promotion minister Mthuli Ncube said this during the 2025 pre-budget seminar underway in Bulawayo.
"During the first nine months of the year, cumulative revenue collections amounted to ZiG63,1 billion, against cumulative expenditures of ZiG66,5 billion, resulting in a budget deficit of ZiG3,4 billion," Ncube said.
"The deficit is expected to remain with a macroeconomic convergence target of 3% of gross domestic product by year-end as well as in 2025."
Treasury reported a ZiG0,9 billion expenditure overrun, with cumulative spending reaching ZiG66,5 billion against a target of ZiG65,6 billion.
"Cumulative expenditure from January to September 2024 amounted to ZiG66,5 billion, against a target of ZiG65,6 billion resulting in an expenditure overrun of ZiG0,9 billion," he said.
"From January to September 2024, Treasury has consistently disbursed funds, ensuring that ministries, departments and agencies receive the necessary budget support for their operations."
He noted that most ministries had utilised their approved budgets, with the Transport ministry overspending.
"While most ministries, departments and agencies have maintained their budget utilisation within the approved limits, a few exceptions have exceeded their allocated funds," he said.
"One such example is the Transport and Infrastructural Development ministry and we are aware of the infrastructural developments that are currently underway."
Ncube also highlighted that he will prioritise fiscal and monetary policies to stabilise the economy when he announces the 2025 budget later this month.
"Government will prioritise fiscal and monetary policies to support the stability of the domestic currency, the ZiG, and a stable macro-economic environment," he said.
"Among other interventions, the Liquidity Management Committee will play a greater role in co-ordinating fiscal and monetary measures that effectively manage liquidity injections into the economy.
"Additionally, a comprehensive exercise to restructure the terms and conditions of the national debt will be implemented in order to address the unsustainable high servicing costs."
Source - newsday
