Zimbabwe: Parliamentary Committee Says 'A Very Bad Precedent' Has Been Set After Finance Ministry Officials Failed to Give Zimbabwe's GDP Figure

23 October 2024
New Zimbabwe (London)

BUDGET and Finance Parly committee members on Monday were left dismayed after Finance ministry officials and its parastatals came to Parliament unprepared for budget consultations where they presented their bid for the 2025 national budget.

The officials were led by Acting Chief Director Bernard Mupuriri and the Finance Director Kudakwashe Zata presented the Ministry's expenditure.

There was an overexpenditure with an average of 60%, at the end of the period from January to September 30, 2024. Zata reported that by the end of the same period in 2024, the budget expenditure was 84.8%.

The officials, including those from parastatals, ZIMRA and ZIMSTAT who had accompanied the ministry officials failed to give the legislators the country's gross domestic product (GDP).

The committee chairperson Clemence Chiduwa had asked where Zimbabwe's GDP stood and all the officials could not immediately give an answer leaving the lawmakers to consider abandoning the meeting.

The Finance Secretary George Guvamatanga was absent, having travelled out of the country on State business according to Zata.

Chiduwa asked, "I want to find out what is the GDP of Zimbabwe, the revenue target is a percentage of the GDP, the degree to which the government is able to collect revenue is dependent on our understanding of the GDP but, I can tell you do not want to respond."

"For us to understand the figures I know the Ministry of Finance, their capacity to collect revenue is a certain percentage of the GDP so this is why I asked the GDP of Zimbabwe and we need those answers."

Further, the former Deputy Minister said, "You can see from the team that they are not answering, so how do we move forward because I wanted our capacity to collect revenue which will have implications"

He added: "Do we need a memo so that we can get some answers on GDP and we expect seriousness from the ministry?"

Mbizo MP Corban Madzivanyika said, "It is unfortunate that the ministry is not able to give us answers on it. Because it has ramifications in terms of when we want to look at whether the data that we have is sustainable or not.

"We have been making conversations with the Ministry in terms of the statistics. But in the absence of the GDP, it becomes very difficult for us to know when this ends in terms of data. Unfortunately, the officials are not able to give us the statistics. In the absence of the statistics, it becomes difficult for us to know anything and move on with the meeting."

Another committee member, Dzivaresekwa MP Edwin Mushoriwa said, "We are dealing with a whole country's budget and that is basic. If the ministry does not know the GDP, you have set a very bad precedent."

The Committee told the officials to have important information at their fingertips.

"lt does not help for them to start calling the office and asking what the figures are. And now we are asking in terms of US dollars how much is ZiG$96.9 trillion. I think it's important that when they come here, they are fully prepared so that they can answer every question which is asked by all of the members.

However, Zata responded by saying: "In terms of GDP, do you want 2024 or 2023, but I will give you the figures, for 2024 our GDP is ZiG 96,9 trillion and we need to apply the exchange rate and improve the budget transparency score from 59 to 63 out of the 100 on budget transparency in the open budget service.

"In the 2025 national budget, the ministry's bid is ZiG3,753 billion in terms of the ceiling so far. This is against a bid of ZiG14 billion. This bid includes salaries."

The GDP figures were said to be at ZiG 133 trillion as at December 2023, whereas the 2024 GDP projections stood at ZiG 96.9 trillion.

The committee highlighted that most of the problems faced by the ministry were a result of the committee's exclusion in coming up with microeconomic figures.

"Projections are subject to changes and they do not add value. Zimbabwe is 85 percent dollarised, can we have those figures in US dollars?" Madzivanyika saId.

The ministry officials told this committee that some of the questions that were asked by the members were not meant for the ministry but for the Treasury hence, more time was needed for them to get accurate answers from the relevant office.

Zata also pleaded for more time to correct things and the committee ordered the ministry and its parastatals to return to Parliament next Thursday.

Read the original article on New Zimbabwe.

Tagged:
Copyright © 2024 New Zimbabwe. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.