By Lovemore Khomo
The Budget Committee of Parliament has urged government to observe financial prudence during implementation of 2024/25 national budget expected to pass before April 1.
Chairperson for Budget and Finance Committee Gladys Ganda was responding to budget statement on Tuesday that was presented by Finance Minister of 23rd February, 2024 in Parliament.
On macroeconomic targets, Ganda recommends that government should put up strategies of how to attain the stability that is needed for growth.
“The country is far from the target inflation of less than 10 percent and growth rate of at least 6 percent which threatens achievement of the desired growth,” explained Ganda.
She said in light of the newly negotiated shelled groundnuts and soybean market; the Committee calls for efficiency in the agriculture sector initiatives and adequate support should be given to smallholder farmers who are already engaged in the production of cash crops.
On the Agriculture, Tourism and Mining ATM strategy, the Budget and Finance Committee Chairperson realizes that the proposed initiatives are not all new but it is implementation that has been a challenge.
“There is, therefore, a need to provide actionable targets in order to ensure effective implementation and accountability. The Committee will continuously engage the Government to ensure transparency, accountability and effective implementation.” She said.
The Committee requests the Minister to present to the house a comprehensive report of how successful diaspora investment engagements and worker remittances interventions have been.
On dividend targets being significantly reduced, the Committee calls the Minister to explain why this has been done despite measures being implemented to improve revenues.
The Committee also recommends that government should carefully control growth of wage bill, with such interventions as: regularly conducting payroll and personnel audits, assessing functional reviews, keeping in check nonessential recruitments and creation of so many budgetary units with similar functions and mandates.
Ganda also raise an issue of public debt, and implores the Minister to apprise the August House the results of debt restructuring and debt swap negotiations with commercial and bilateral lenders.
“The Committee would like an actionable plan for dealing with specifically domestic debt which is choking the budget with debt interest payments.”
The Committee has therefore encouraged government to expedite integration of IFMIS to Local Councils and HRMIS and update the House on whether all Government contracts, commitments and revenues are now being captured and managed through the system.
