OPPOSITION legislators have rejected Finance, Economic Development and Investment Promotion minister Mthuli Ncube’s 2025 national budget, citing its failure to address key economic fundamentals.
Ncube unveiled a ZiG276,4 billion budget at the New Parliament Building in Mt Hampden yesterday which critics say was short on major economic turnaround initiatives or major relief measures for the troubled citizens.
Dzivarasekwa legislator Edwin Mushoriwa criticised the budget, calling it a “betting and plastic budget” that neglects the country’s economic challenges.
Mushoriwa argued that government is technically broke and the budget’s assumptions on inflation and exchange rate are not credible.
He accused Ncube of merely following constitutional provisions without ensuring the budget allocations match the actual disbursements.
“The 2024 budget, which I describe as betting and plastic budget, presented by the minister failed to address the key economic fundamental
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befalling the economy.
“The minister failed to acknowledge the fact that government is technically broke at the time that he was presenting the budget, implying that the fundamentals in the previous budget were flawed,” he said.
Mushoriwa said the assumptions on inflation, exchange rate were not credible and hence this budget would fail.
“The minister appears to be ticking the boxes of the constitutional provisions because historically, for the past five years, the disbursement matrix does not match the budget presented and passed in Parliament,” he said.
Mbizo legislator Cobarn Madzivanyika echoed similar sentiments, adding that over 60% of the budget allocations were made to non-productive areas.
He also expressed disappointment that the minister failed to address the country's energy crisis, with the Energy minister allocated a mere ZiG259 million.
Marondera legislator Caston Matewu questioned government’s ability to fulfil the 2025 budget, given its failure to meet the previous year’s budget allocations.
He criticised the minister’s tax policies, arguing that they punish the industry that drives economic growth.
In his budget statement, Ncube said African GDP was experiencing high borrowing costs.
He said the Sadc region’s projected GDP growth would be at 2% owing to the El Niño-induced drought while Zimbabwe’s economic growth was projected at 6% owing to weather changes.
Ncube said Zimbabwe would be one of the fastest growing economies in the region in the forthcoming fiscal year, adding that the country’s foreign currency receipts had increased by 17% to US$10 billion.
He also claimed that prices for goods and services have been stable following the introduction of the ZiG in April this year.
The local currency also depreciated while the amount of money to be taken outside the country was reduced, he said.
Ncube said revenue collection was expected at ZiG270 billion in 2025, while the budget focused on improving macro businesses.
Expenditure will be ZiG276,4 billion.
His budget proposals included ZiG22,9 billion for the Lands, Agriculture, Fisheries, Water and Rural Development ministry, Local Government and Public Works ministry (ZiG4,9 billion) and Health and Child Care portfolio (ZiG28,3 billion).
Ncube set aside ZiG46,6 billion for the Primary and Secondary Education ministry, while the Justice, Legal and Parliamentary Affairs ministry got ZiG5,6 billion, with ZiG38,6 billion going to the peace and security sector.
The Foreign Affairs and International Trade ministry got ZiG4 billion.