THE BULAWAYO City Council (BCC) has proposed a US$309 million 2025 budget with the revenue budget accounting for a huge chunk of the funds.
The proposed budget will be 17% up from the US$264 million budget for 2024.
Of the proposed budget for 2025, capital budget will be US$82 million constituting 26% of the total vote. The proposed 2024 capital budget was US$96 million which was 36% of the vote.
Revenue Budget for 2025 will be US$227 million constituting 74%.
This was revealed by the BCC’s Finance and Development Committee chairperson Mpumelelo Moyo when he was presenting the 2025 budget and the review of the 2024 budget on Friday.
The 2025 budget was presented under the theme Consolidating Economic transformation which resonated with the City of Bulawayo’s strategy of “Renewal, Stabilisation and Growth”.
Moyo said unlike last year where budget consultations were subdued due to elections, this year council conducted 41 consultative meetings which attracted 2 320 (0,35% of the population) participants in a city with an estimated population of 658 028.
He said the 2025 budget consultative meetings ran from September 13 to 26 at various venues chosen by the residents at times convenient to them.
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“The city is facing a worsening water shortage challenge. The proposed budget seeks to address some of the water issues the city is facing. To that end the 2025 budget proposal saw the suspension of free water while the needy and disadvantaged will be identified and continue to be subsidised,” Moyo said.
“Continued low rainfall patterns and dwindling water levels at council’s supply dams have questioned the logic of offering free water during tight water rationing and shedding.”
Council introduced a water levy to fund the rehabilitation of the water infrastructure.
Moyo said the proposal was US$1 for domestic properties and US$10 for non-domestic properties.
“The proposal is that the fund be ring-fenced and it should be US$1 for domestic properties and US$10 for non-domestic properties,” Moyo said.
He said 62% of the consultative meetings voted against the removal of free water while 62,5% voted in favour of the roads levy and 65% voted in favour of the water levy.
“The proposed budget for 2025 is set at US$309 million. The proposed capital budget is set at US$82 million constituting 26% of the total budget with the revenue budget set at US$227 million constituting 74%,” Moyo said.
In the breakdown of the 2025 total expenditure budget, Moyo said salaries would gobble US$108 775 542 which was 35% of expenditure, general expenses were at US$70 147 210 gobbling 23%, repairs are at US$10 159 204 (3%), maintenance is pegged at US$37 917 969 (12%) and the capital budget is at US$81 692 717 (26%).
He said this amounted to a total expenditure of US$308 692 642. Moyo said the capital budget for 2025 was projected at US$82 million.
“The rojects will be funded from external borrowing, revenue contributions to capital outlay, Zinara [Zimbabwe National Roads Administration] funding, devolution funds, public subscription (pre-sale scheme) in various suburbs,” Moyo said.
“The Inter-governmental Funds Transfer or devolution funds allocation for the year 2025 is yet to be released. However, council is projecting to be allocated a ZWG28 million recurrent grant and a capital grant of ZWG130 million based on the 2024 devolution grant allocations. The Zinara funds for 2025 are based on estimates. Government is yet to release the 2025 allocations for this fund.”
Moyo, however, lamented the rate of price increases in US dollar as reflected by the annual rate of inflation which has remained high in Bulawayo compared to national inflation.
“According to RBZ records inflation in Bulawayo was at 108,54% in August 2024 compared to national inflation which was at 106,65%.
“A similar pattern has been evident on ZWG inflation figures where Bulawayo’s rate of inflation has been higher than the national and City of Harare ones.
“In August 2024 the annual inflation rate for the City of Bulawayo in ZWG stood at 101,4% compared to the national inflation which was at 98,9%. Harare City’s inflation stood at 101,2%.”
On the review of the 2024 budget, Moyo said it was crafted in the year 2023 during a period of exchange rate volatility where the rate hovered around Z$6 715 at the time of budget approval.
He said in April 2024 the rate had reached Z$24 261 to US dollar and government introduced ZIG on April 5, 2024 to slow down the inflation rate.
He said by August this year, government had disbursed ZWG 512 103,53 of the devolution funds. Moyo said council had received ZWL 2 811 833 323 plus ZWG 2 226 995 by August 2024 under Zinara funds.
