Government's unbudgeted spending has driven the country to bankruptcy, with Treasury directing ministries to prioritise wages and social service expenditures while cutting travel as the coffers have dried up.
Millions of public funds were funnelled towards preparations for the Southern African Development Community (Sadc) summits including the extraordinary meeting held last week.
The government has also spent close to US$17 million on vehicles bought for 237 traditional leaders across Zimbabwe while catering for their sustenance sparking outrage among citizens and economists.
The government reportedly spent millions of US dollars on infrastructure upgrades, luxury villas and other accommodation ahead of the Sadc Heads of State and Government Summit held in August this year.
Roads leading to the venue were hastily rehabilitated, while lavish gala dinners and cultural showcases drained public coffers.
Although these efforts were designed to project an image of progress and stability, they left a significant dent on the national budget.
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By September, the Transport avnd Infrastructural Development ministry had surpassed its 2024 national budget allocation by 245% within six months and was in urgent need of more resources to sustain operations until year-end, according to a report by the Budget and Finance Parliamentary Committee.
The ministry received ZiG4,2 billion from Treasury during the first six months of the year for road infrastructural projects.
In 2023 alone, the government allocated over ZiG 30 billion for traditional leaders, a figure that has since ballooned.
In September, President Emmerson Mnangagwa doled out cars worth millions of United States dollars to traditional leaders when government was failing to raise funds to feed hungry masses affected by the El Nino-induced drought.
While traditional leaders play an essential role in preserving cultural heritage and mediating local disputes, critics argue that the funds could have been better spent on addressing pressing developmental issues.
Economists told NewsDay that such spending was misplaced in a nation grappling with economic stagnation, chronic unemployment and deteriorating public services.
“We understand the importance of international relations, but spending extravagantly while hospitals lack basic medicines is deeply irresponsible,” economist Kundai Mutseyekwa said.
Simultaneously, the government has increased spending on traditional leaders, widely seen as a strategy to secure their political support.
Chiefs and headmen have been showered with benefits, including top-of-the-range vehicles, hefty allowances and house upgrades.
Political activist Obert Masaraure said the traditional leaders were being pampered because they played a critical role in Zanu PF power matrices.
“Traditional leaders are being used as political tools, not community builders. This is State capture disguised as cultural preservation,” he said.
Zimbabwe’s economy, already weighed down by hyperinflation and a weak local currency, is struggling to absorb these expenses.
The Zimbabwean currency continues to lose value against the US dollar hence basic goods are unaffordable to many citizens.
Government’s spending spree has also raised concerns among international lenders, who view fiscal indiscipline as a barrier to debt relief and foreign investment.
Zimbabwe Gold (ZiG) currency has depreciated sharply, losing 46% of its value since it was introduced in April to replace the battered Zimdollar.
The ZiG in September took a 43% knock against the United States dollar to US$1:ZiG24,39 from the prior day’s exchange rate of US$1:ZiG13,99, as authorities buckled under pressure to dump the command exchange rate.
In a letter to government departments, Finance, Economic Development and Investment Promotion secretary George Guvamatanga admitted that government is broke.
“As you may be aware, the local currency unit (ZWG) recently depreciated by 43% against the US dollar resulting in a substantial mismatch between revenue inflows, collected in some cases, with a one-month lag and local currency expenditures that immediately adjusted to the new exchange rate, in the process severely constraining fiscal space for the last quarter of 2024,” he said.
“The imbalance was further exacerbated by a backdated salary review award in October 2024 to the civil service. Given the consequent limited fiscal space and the need to mobilise additional resources to fund critical inescapable expenditures that include the 2024 bonus award, food deficit mitigation support, 2024/25 agriculture input support and utilities among other critical requirements MDAs (ministries, departments and agencies) are, therefore, requested to prioritise their expenditure commitments during this period.”