Govt departments exhaust 2024 budget allocations in six months

By Daniel Chigundu

Several government ministries, departments, and agencies (MDAs) in Zimbabwe have already spent their entire 2024 national budget allocations as of June 30, 2024.

Notable among the spenders are the Ministry of Transport and Infrastructure Development, headed by Honourable Felix Mhona, and the Zimbabwe Council of Chiefs.

This information is contained in the 2024 Mid-Year Budget Statement presented to Parliament by the Minister of Finance, Economic Development, and Investment Promotion, Mthuli Ncube.

“In terms of budget utilization by MDAs, overall utilization amounted to 44.2% of the Approved Budget allocation, while at least nine Votes had expended more than 50% of their allocation,” read the statement.

The Ministry of Transport and Infrastructure Development initially allocated a budget of ZiG 1,740.2 billion and incurred expenditures totaling around ZiG 4,255.4 billion, a staggering 244.5%. The Zimbabwe Council of Chiefs also overspent, with an initial allocation of ZiG 60.3 million but expenditures amounting to ZiG 71.5 million (118.7%).

Other significant overspenders include the Office of the President and Cabinet, which utilized 91.7% of its budget (ZiG 2,983.8 billion out of ZiG 3,255.0 billion), and the Ministry of Finance, which spent 84.8% of its allocation (ZiG 2,335.8 billion out of ZiG 2,753.3 billion). The Ministry of Local Government and Public Works used 72.2% of its budget (ZiG 1,329.2 billion out of ZiG 1,841.2 billion). At the same time, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development spent 69.1% (ZiG 4,467.0 billion out of ZiG 6,467.5 billion).

Additional notable expenditures include the Public Service Commission, which spent 67.2% of its allocation (ZiG 1,263.7 billion out of ZiG 1,880.6 billion), the Zimbabwe Electoral Commission (ZEC), which used 55.0% (ZiG 96.7 million out of ZiG 176.0 million), and the Ministry of Home Affairs and Cultural Heritage, which spent 54.7% (ZiG 2,371.5 billion out of ZiG 4,331.7 billion).

No need for a supplementary budget

Despite these figures, Minister Ncube assured that the budget allocations remain adequate for the remainder of the year, stating, “In the absence of new revenue measures and with budget utilization still within target, the approved budget is adequate to cater for government operations to the end of the year, barring other significant shocks.”

From January to June 2024, the government collected ZiG 36.5 billion in revenues, consisting of ZiG 33.9 billion in tax revenue and ZiG 2.6 billion in non-tax revenue. Against expenditure estimates of ZiG 38.9 billion, this resulted in a budget deficit of ZiG 2.3 billion.

Zimbabwe’s approved national budget for 2024 stands at approximately ZiG 87.9 billion, converted from ZW$58.2 trillion following the introduction of the Zimbabwe Gold currency in April this year. The transition from ZW to ZiG has been cited as a factor contributing to disbursement challenges, particularly in the second quarter of 2024.

Govt departments exhaust 2024 budget allocations in six months