Finance and Economic Development Minister Mthuli Ncube has told Parliament that Zimbabwe has overspent by ZW$7.8 billion in the first half of 2021.
He said the expenditure was largely driven by employee compensation and non-financial assets which went above targets respectively.
Presenting the 2021 National Budget Review, Minister Ncube however said he was certain that the full-year budget expenditure target of ZWL$421.6 billion will be maintained.
‘’Overall expenditures during the period January to June 2021 stood at ZWL$197.6 billion, implying expenditures were above the half-year target of ZWL$189.8 billion by ZWL$7.8 billion.
‘’Major expenditures were on the compensation of employees at ZWL$80 billion against a target of ZWL$73.8 billion and Non-Financial Assets (capital budget) at ZWL$67.4 billion against a target of ZWL$58 billion.
‘’Social benefits and subsidies stood at ZWL$14.5 billion and ZWL$2.9 billion, against the half-year targets of ZWL$6.1 billion and ZWL$1.4 billion, respectively,’’ he said.
The finance minister said he will try to contain the expenditures to ensure they do not exceed the full-year target.
In its 2021 National Budget, Zimbabwe is looking at expenditures of about ZW$421.6 billion.
‘’In the outlook to December 2021, budget expenditure target of ZWL$421.6 billion will be maintained as we try to contain expenditures, save for exigencies managed through reallocations, where necessary,’’ he said.
It remains to be seen if the minister will be able to contain the expenditure level as government departments are in the habit of spending well above what they would have been allocated.
Mthuli Ncube also faces a challenge from the ever-demanding civil servants who are still calling for improved wages.
Diaspora remittances to reach US$1.3 billion
Meanwhile, the finance minister has also revealed that remittances continue to grow and are expected to reach about US$1.3 billion by year-end.
‘’Between January and June 2021, the country received US$746.9 million in diaspora remittances compared to US$288.7 million received during the same period last year.
‘’Remittances are projected to continue to drive the current account surplus in 2021, with end-year projection of US$1.3 billion,’’ he said.
Zimbabwe is said to have over two million of its citizens living in the diaspora. Most of them are said to be in South Africa, Botswana, the United Kingdom, Australia, the US among other countries.
Govt exceeds half-year expenditure by ZW$7.8 billion
Govt exceeds half-year expenditure by ZW$7.8 billion
