Chiefs exhaust 2024 budget allocation on 237 unplanned vehicle purchases
By Daniel Chigundu
Finance and Economic Development Minister, Mthuli Ncube, has revealed that the Chief’s Council purchased 237 vehicles that were not budgeted for, resulting in a 118% overspend from their 2024 budget allocation as of the end of June.
The Zimbabwe Council of Chiefs was allocated ZWG 60.3 million in the 2024 national budget but incurred expenditures amounting to ZWG 71.5 million (118.7%), raising concerns about poor financial management.
However, Minister Mthuli Ncube defended the overspending by the traditional leaders, arguing that it was unfortunately necessary.
He told the National Assembly during the debate of the Midterm Budget Statement that chiefs require the cars as tools of the trade.
”Let me turn to the Council of Chiefs. It was again an issue raised by Honourable (Corban) Madzivanyika why the Council of Chiefs had exceeded their budget utilization by 100% and this is before year-end.
”I must say it should be noted that the Council of Chiefs incurred excess expenditures on their vote due, in part, to the unbudgeted procurement of 237 vehicles for Chiefs as well as the review of allowances and other related national events.
”However, the vehicles were the bulk of this expenditure. These are tools of the trade. They ought to be able to move around to attend to their constituencies and they need to be mobile.
”So, this is important but unfortunately, it was way above their budget but we were able to cover for it as Treasury through the unallocated reserves,” he said.
The Chief’s Council is not the only government institution that has overspent in the 2024 budget. The Ministry of Transport and Infrastructure Development initially allocated a budget of ZWG 1,740.2 billion, however, incurred expenditures totalling around ZWG 4,255.4 billion, a staggering 244.5%.
Other significant overspenders include the Office of the President and Cabinet, which utilized 91.7% of its budget (ZWG 2,983.8 billion out of ZWG 3,255.0 billion), and the Ministry of Finance, which spent 84.8% of its allocation (ZWG 2,335.8 billion out of ZWG 2,753.3 billion).
The Ministry of Local Government and Public Works used 72.2% of its budget (ZWG 1,329.2 billion out of ZWG 1,841.2 billion). At the same time, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development spent 69.1% (ZWG 4,467.0 billion out of ZWG 6,467.5 billion).
No supplementary budget
Despite the overspending, the Finance Minister ruled out introducing a supplementary budget, arguing that the budget remains adequate for the remainder of the year.
He told Parliament that the ministries and institutions that have exhausted their entire budgets will be covered through extra allocations from the unallocated funds.
”A question again was raised by Honourable Madzivanyika about ministries that had exhausted their budget and how they will survive up to year-end considering that there is no supplementary budget for this year.
”Madam Speaker Ma’am the conversion of the 2024 Budget from ZWL to ZiG has resulted in most line ministries restoring their budget capacity which can take them up to year-end, either some ministries that would have exhausted their full budget, Treasury will utilize and are utilizing the unallocated reserve transfer to support disbursements up to year-end,” he said.
Zimbabwe has an approved national budget for the 2024 financial year, which stands at approximately ZWG 87.9 billion, converted from ZW$58.2 trillion following the introduction of the Zimbabwe Gold currency in April this year.
From January to June 2024, the government collected ZWG 36.5 billion in revenues, consisting of ZWG 33.9 billion in tax revenue and ZWG 2.6 billion in non-tax revenue, against expenditure estimates of ZiG 38.9 billion, resulting in a budget deficit of ZWG 2.3 billion.
Chiefs exhaust 2024 budget allocation on 237 unplanned vehicle purchases
