THE 2024 Budget review came at a critical juncture, marked by significant economic shifts including the introduction of a new currency and the upcoming Southern African Development Community (Sadc) summit.
The budget statement highlighted new allocations after the currency conversion from RTGS to the Zimbabwe Gold currency (Zig), as well as, resources directed towards various government programmes and policy initiatives aimed at economic transformation.
While the budget review presented some positive gender implications, such as measures to increase demand for the local currency, there are, however, some key shortcomings that undermine a thorough assessment of the gender-responsiveness of the budget.
The lack of detailed information on current ministry allocations and a comparative United States dollar (USD) analysis makes it challenging to determine if sufficient resources are being directed towards programmes and initiatives that address the needs and priorities of women and girls.
To enhance gender-responsive public finance management, it is crucial for the government to provide timely, gender-disaggregated data in the budget presentation.
This would enable more rigorous scrutiny of the government's commitments to advancing gender equality, strengthen women's participation in economic policymaking, and enhance the ability of the state to deliver on its obligations towards substantive gender equality.
Monitoring the actual figures of budget allocations and expenditures across departments would give a true reflection of how the budget is performing in addressing the needs of women and men.
This article analyses the gender implication of some of the proposed initiatives by the Finance and Economic Development minister in the mid-term fiscal policy and economic review.
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Reduced growth rate to 2%
The disproportionate impact of reduced economic growth due to El Niño-induced drought on women and girls is a critical concern that warrants thorough consideration in the budget review process.
Women and girls often face heightened vulnerability during times of economic hardship, including increased food insecurity, diminished access to healthcare and education, and higher rates of poverty.
This is exacerbated by women's roles as primary caregivers, which can intensify their burdens during periods of crisis.
The budget should have allocated additional resources to targeted social protection measures and mitigation strategies to address these gender-specific risks.
For instance, increased investments in food security programmes, with a focus on equitable distribution and women's access, could have helped offset the disproportionate impact on women and girls.
Similarly, measures to support women's economic security, such as job creation, skills training, and access to financial services, could have been included to strengthen their resilience.
Reduced presumptive tax
The proposed reduction in Zimbabwe's presumptive tax presents an opportunity to address the disproportionate challenges faced by women in the small business and informal sectors.
The high tax rates have posed significant barriers for these entrepreneurs and workers, many of whom are women.
The decrease in presumptive tax can potentially benefit women-owned and operated small businesses, as well as women working in the informal sector, by enhancing their economic opportunities, financial inclusion, and overall economic empowerment.
This, in turn, could allow women to reinvest more resources into their businesses, improve their livelihoods, and contribute to the country's economic growth.
However, to fully capitalise on this initiative and ensure equitable outcomes, the government should consider coupling the tax reduction with additional measures that address the specific challenges faced by women.
This could include flexible payment options, such as providing tax incentives and formalisation support to encourage the transition from the informal to the formal sector, streamlining regulatory frameworks to reduce barriers for women entrepreneurs, and investing in financial literacy and business skills development programmes targeted at women.
Excise duty on electronic cigarettes
The proposed increase in excise duty on electronic cigarettes in Zimbabwe could have far-reaching implications, particularly in addressing the growing concern of drug abuse among the youth.
While studies have shown higher rates of e-cigarette use among men compared to women, the policy's impact may extend beyond gender-specific consumption patterns.
Reduced e-cigarette usage among men, as a result of the increased tax, could lead to positive health outcomes for their families.
Women and children, who are often disproportionately exposed to second-hand smoke, may experience improved well-being as their male counterparts' nicotine and tobacco intake decreases.
Moreover, the tax measure could play a pivotal role in curbing the country's pressing issue of drug abuse, which has been exacerbated by the widespread use of e-cigarettes, particularly among students.
By making these devices less accessible and affordable, the policy may discourage young people from experimenting with them, often serving as a gateway to more harmful substances.
This, in turn, could have a transformative impact on the youth's overall development and focus.
With reduced exposure to the risks of drug abuse, students may be better able to concentrate on their educational and personal growth, ultimately contributing to the long-term social and economic prosperity of the nation.
It is crucial that the government closely monitors the implementation and impact of this excise duty policy, ensuring that the intended benefits, particularly in terms of addressing the country's drug abuse challenges, are realised.
Exemption of VAT on livestock, meat
The proposed removal of VAT on livestock and meat products in Zimbabwe has the potential to yield both benefits and risks when viewed through a gender lens. On the positive side, the elimination of VAT on these essential food items could make them more affordable and accessible, especially for lower-income households, potentially improving food security and nutrition for family members, including women and children.
Additionally, the reduced prices could increase the income and financial autonomy of women involved in small-scale livestock farming and the sale of meat products, enhancing their economic empowerment.
Furthermore, the alleviation of the financial strain on households, often shouldered disproportionately by women as primary caregivers, could allow them to allocate resources towards other essential needs.
However, the policy change is not without its risks.
The policy could disrupt the livestock and meat supply chain, leading to unintended consequences such as price fluctuations, hoarding, or the creation of black markets, which could disproportionately affect women who may have less bargaining power in these markets.
There is also a risk that the benefits may not be evenly distributed, with wealthier households potentially reaping a larger share of the savings compared to lower-income and marginalised communities, where women are often overrepresented.
To maximise the gender-related benefits and mitigate risks, the government should monitor market dynamics and implement targeted social protection programmes to ensure equitable distribution of the VAT removal's impacts.
Lack of data
In conclusion, it is important to note that the budget review process has some positive gender implications, but there are key shortcomings that undermine the ability to assess the gender-responsiveness of budget spending.
The lack of detailed ministry allocations and a comparative USD analysis obscures the true impact on women and girls, preventing meaningful gender analysis and accountability for equitable resource distribution.
Addressing these data gaps in the budget presentation is crucial for promoting gender-responsive public finance management, strengthening women's participation in economic policymaking, and enhancing the government's delivery on its obligations towards substantive gender equality.
- The Zimbabwe Women’s Resource Centre & Network is a knowledge institution that collects and provides information that will lead to the transformation of women’s lives. The organisation is driven by the vision to see women enjoying the benefits of actualising their full potential in all areas of their lives. It places particular emphasis on strengthening the voice of women and girls and enabling them to influence the decisions that affect their lives. Amongst others, one of its strategic focus is to contribute towards Gender Responsive Public Services. These weekly New Horizon articles, published in the Zimbabwe Independent, are coordinated by Lovemore Kadenge, an independent consultant, managing consultant of Zawale Consultants (Pvt) Ltd, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountancy Institute in Zimbabwe (CGI Zimbabwe). — kadenge.zes@gmail.com or mobile: +263 772 382 852.
