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The Ministry of Finance and Economic Development released only one-third of the funds allocated to the Ministry of Health and Childcare in the 2022 national budget.
This was revealed by the Health Minister, Vice President Constantino Chiwenga while addressing a 2023 Parliament pre-budget seminar in Harare on Monday.
Chiwenga said the underfunding of the health sector resulted in his ministry managing to procure only 14% of the required medicines. He said:
<blockquote>
The 2022 annual budget for medicines and health facilities was $15 billion, and only $5 billion was released.
The comment from the public was that people were failing to access the most basic services, and their major concern was the need for critical equipment and services such as maternity.
The year 2022 faced cash challenges and this led to the inadequacy of critical medical supplies.
However, with the funds that we have availed, 14% of the required medicines were procured.
… The ministry takes note of the state of the infrastructure at some of the health institutions.
To address this, the ministry was allocated $18 billion, however, only 2,8 billion was disbursed.
I want to clarify this, for the health posts, we should have 1 700 ward-based health facilities if we are to give attention in terms of healthcare to every Zimbabwean.
</blockquote>
Zimbabwe’s per capita (per person) spending on health is said to have dropped from US$45 in 2021 to US$20 this year.
The World Health Organisation recommends a per capita health expenditure of at least US$84 per year.
Meanwhile, Zambia’s 2022 per capita spending on health is US$85, South Africa (US$570 per person), and Malawi (US$35). | <a href="https://www.newsday.co.zw/health/article/200002559/treasury-starved-hospitals-of-medicines-chiwenga">NewsDay</a>

Pindula News

Treasury Disbursed Only One-third Of Health Ministry's Budget Allocation

Villagers in Umzingwane District, located just 40km from Zimbabwe’s second-largest city, Bulawayo are still climbing hills and trees in order for them to access mobile network services.
This was revealed by Umzingwane MP, Levi Mayihlome (ZANU PF), during a debate on the 2022 national budget in Parliament recently.
Mayihlome said the unreliability of network coverage in his constituency has put villagers at a disadvantage when it comes to accessing online services. He said:
<blockquote>
I come from a constituency that is barely 40 km from Bulawayo; 50% of people in that constituency do not have any access to any connectivity of whatever kind.
We are talking of people climbing mountains to access social media. We are talking of people climbing trees to report about ill patients.
You are talking of people who have to compete with those based in cities to apply for vacancies in nursing, teaching and all those organizations now advertise on the internet or WhatsApp.
</blockquote>
He urged Finance and Economic Development Minister, Mthuli Ncube to adequately finance internet and mobile phones connectivity in rural areas to ensure they are not left behind in national development. Said Mayihlome:
<blockquote>
How do we compete with those that come from Harare? They come 40 km away but they do not have any network and we have been talking about this every year and the [Finance] Minister has been promising to fund this but nothing has happened.
Honestly, if the President is saying no region or no place and no one should be left behind, why is the Ministry not practising that?
Why should we be left behind and watch other parts of the country talk about smart agriculture, e-learning and all these other developments and yet we are just watching it all, nothing?
</blockquote>
Mayihlome said it was disappointing that every year money is promised for the provision of mobile network services but it is never released.
<h4>More: <a href="https://cite.org.zw/umzingwane-villagers-still-climbing-trees-to-access-cellphone-network/">CITE</a></h4>

Villagers Still Climbing Trees, Mountains To Access Cellphone Networks

Finance minister Mthuli Ncube has explained the proposed US$50 cellphone levy which he said would apply to individuals who would have failed to pay duty on imported cellphones.
Ncube’s original proposal, which he made in the 2022 national budget, triggered a public outcry with Members of Parliament threatening to reject the Budget.
But during the debate on the Finance Bill in the Senate on Tuesday, Ncube said the US$50 levy was a mechanism to enforce the payment of the 25% duty. He said:
<blockquote>
When it comes to other electronic gadgets, we have actually reduced the duty to zero. The only duty remaining is the 25% duty on phones.  So what is the problem we trying to solve? The problem we are trying to solve is that no duty of 25% is being paid by anyone who is bringing phones into the country. Why? Because these are small gadgets, you put them in your pocket or wherever in your handbag and you pass through the border.  No duty is paid.
We are not collecting anything.  What we are trying to do is to design a mechanism that can enforce the payment of the 25% duty, hence this 50% levy.  It is only payable if you cannot prove that you have paid the 25% duty.  So it is not a duty, it is an enforcement mechanism to enforce the payment of the duty which already exists in the first place.
</blockquote>
Senator Chief Ndlovu proposed that the Finance ministry should scrap off the levy or lower the payable levy as citizens were having challenges to reclaim the funds they would have paid to the Zimbabwe Revenue Authority (ZIMRA).
Ndlovu added that companies that have got millions of dollars struggle to get their money from ZIMRA adding that was going to be worse for someone who is travelling from rural areas to come and claim a US$50 fee.
More: <a href="https://www.newsday.co.zw/2021/12/ncube-makes-u-turn-on-cellphone-levy/">NewsDay Zimbabwe</a>

Finance Minister Ncube Explains The Proposed US$50 Cellphone Levy

Zimbabwe’s lawmakers have threatened to reject the 2022 National Budget proposal saying the government’s statement of expenses and income was “useless”.
Several legislators want to reject the proposals when the Finance and Economic Development Minister, Mthuli Ncube takes it to Parliament for debate and possible endorsement.
Ncube last week presented a ZWL$927.6bn National Budget which analysts said lacked any attempt to meaningfully resolve the country’s economic crisis.
Norton legislator Temba Mliswa warned this week lawmakers would reject the budget.
<blockquote>
As Parliament, we have not done what we are supposed to do. Chief whips have been a big let-down in Parliament for whipping MPs to pass useless budgets.
To chief whips let me warn you, this time you are going to lose. We can no longer be kids any more. We are going to reject this budget this time. Tinotambiswa bhora risina mweya.
</blockquote>
Chegutu East legislator, Webster Shamu said he wanted Ncube to reconsider the budget. He said:
<blockquote>
The budget is in Zimbabwe Dollar but it’s going to be affected due to fluctuations.
</blockquote>
Shamhu added that legislators had highlighted the issue of legacy debts during a pre-budget seminar in Victoria Falls, “But up to now, nothing has been done.
Southerton MP Peter Moyo also weighed in saying: “We will not pass this budget. It’s like a Mafia gang style.”
Senator, Chief Fortune Charumbira said the finance department was abusing them. He said:
<blockquote>
We did not agree to cellphone levy in Victoria Falls and many other things. So, what were we doing in Victoria Falls (pre-budget conference). Tirikushandiswa [we are being used].
</blockquote>
MDC-T deputy president Thokozani Khupe also raised serious concerns saying that the allocated money is not released. She also urged Ncube to, “Remove that $50 cellphone levy.”
The threat to reject the budget comes as analysts say the financial plan, which is 18.3% of GDP, does not instil hope to revive the economy.
Ncube said the US$50 cellphone levy will be refunded within 30 days if import duty had been paid.
More: <a href="https://businesstimes.co.zw/parly-to-reject-2022-budget/">BusinessTimes</a>

Zimbabwe: MPs Threaten To Reject The 2022 National Budget Proposal

The Ministry of Finance has allocated $11 billion to the Zimbabwe Electoral Commission (ZEC) to fulfil its mandate that includes conducting voter registration and conducting by-elections.
ZEC will hold by-elections during the first quarter of 2022 to replace dozens of MDC Alliance legislators and scores of councillors who were recalled by the MDC-T and to fill seats left vacant through death.
A total of $7.75 billion was allocated for preparatory works for the 2023 elections while $3.25 billion was for holding of by-elections next year.
Presenting the 2022 National Budget statement in Parliament on Thursday afternoon, Finance and Economic Development Minister, Mthuli Ncube said:
<blockquote>
The country will be holding General Elections in 2023 as enshrined in the Constitution and preparatory works (delimitation, voter registration and inspection) will be undertaken to ensure the success of this constitutional requirement.
The 2022 National Budget is, therefore, setting aside $7.75 billion for the respective preparatory works.
Additionally, Government is also allocating $3 25 billion for the holding of by-elections for vacant constituencies in 2022.
</blockquote>
Ncube also allocated over $4 billion to other so-called independent commissions to undertake their constitutional mandates.
The Zimbabwe Media Commission (ZMC) was allocated $510 million while the Zimbabwe Gender Commission got $497.6 million.
The Zimbabwe Human Rights Commission (ZHRC) received $403.9 million while the National Peace and Reconciliation Commission (NPRC) was given $441.3 million.
The Zimbabwe Anti-Corruption Commission (ZACC) was allocated $931.7 million while the Zimbabwe Land Commission got $1.8 billion. Said Ncube:
<blockquote>
Government is capacitating institutions of governance such as the Zimbabwe Anti-Corruption Commission, National Peace and Reconciliation Commission, Judicial Service Commission and others to execute their mandate including decentralising services to local levels.
To date, all Commissions have been capacitated with tools of trade such as vehicles, furniture and equipment, with ZACC, Zimbabwe Media Commission and Zimbabwe Gender Commission, having been provided with office space for their head offices.
The 2022 National Budget allocates resources for further capacitation of all Commissions to undertake their constitutional obligations.
</blockquote>
<h4>More: <a href="https://www.chronicle.co.zw/11bn-set-aside-for-elections/">Chronicle</a></h4>

Mthuli Sets Aside $11 Billion For Elections

Finance and Economic Development Minister Mthuli Ncube on Thursday presented a ZWL$927.3 national budget with a GDP growth projection of 5.5% in 2022.
Presenting his 2022 National Budget in Parliament, Ncube proposed to allocate the largest chunk of the funds, that is, ZWL$124 billion to the ministry of lands, with health getting ZWL$117.7 billion which he said represents 14.9% of the Budget.
Below are the allocations made to the various Ministries:
<ol>
<li>Ministry of Lands, Agriculture, Water, Climate and Rural Development – ZWL$124 billion </li>
<li>Ministry of Mines and Mining Development – ZWL$3 billion</li>
<li>Ministry of Industry and Commerce – ZWL$3.9 billion</li>
<li>Ministry of Environment, Climate, Tourism and Hospitality Industry – ZWL$3.7 billion</li>
<li>Ministry of Youth, Sport, Arts and Recreation – ZWL$7.8 billion</li>
<li>Ministry of Women Affairs, Community, Small and Medium Enterprise Development – ZWL$4.7 billion</li>
<li>Ministry of Transport and Infrastructure Development – ZWL$6.8 billion</li>
<li>Ministry of Energy and Power Development – ZWL$3.9 billion </li>
<li>Ministry of Information Communication and Technology – ZWL$3.3 billion</li>
<li>Ministry of Primary and Secondary Education – ZWL$11.6 billion</li>
<li>Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development – ZWL$5.7 billion</li>
<li>Ministry of Health and Child Care – ZWL$117.7 billion</li>
<li>Ministry of Public Service, Labour and Social Welfare – ZWL$10 billion</li>
<li>Ministry of Information, Publicity and Broadcasting Services – ZWL$2.7 billion</li>
<li>Ministry of Foreign Affairs and International Trade – ZWL$14.9 billion</li>
<li>Ministry of Home Affairs and Cultural Heritage – ZWL$49.4 billion</li>
<li>Ministry of Defence and War Veterans Welfare – ZWL$61.5 billion</li>
<li>Ministry of Justice, Legal and Parliamentary Affairs – ZWL$22.7 billion</li>
</ol>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Lands And Health Ministries Allocated A Combined $241 Billion

Finance Minister Mthuli Ncube said the country’s public finances are sound and consistent with the 2021 Budget objectives and targets.
Presenting the 2022 national budget statement in Parliament on Thursday afternoon, Ncube said revenue collections during the first nine months to September 2021 amounted to ZW$317.4 billion against a projection of 
ZW$291.5 billion.
This resulted in a positive variance of ZW$25.8 billion (8.9%), with revenue collections now expected to reach ZW$495.01 billion (16.6% of GDP) by 31 December 2021.
Ncube revealed that the total expenditures for the first nine months of 2021 amounted to ZWL$351.7 billion against a target of ZWL$305.3 billion, resulting in an expenditure overrun of ZWL$46.3 billion (15.2%).
He said the projected expenditure to year-end amounts to ZWL$509 billion (17% of GDP), mainly on account of COVID-19 related expenditures, increased outlays on grain procurement, as well as other development expenditures.
As a result, the budget deficit for the first 9 months stood at ZWL$32.8 billion and is now expected to end the year at ZWL$14 billion (0.5% of GDP), said Ncube.
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Zimbabwe's Public Finances Healthy, Says Ncube

Former Finance Minister Tendai Biti (2009-13), who is the opposition MDC Alliance vice president has dismissed the 2022 National Budget presentation made by Treasury boss Mthuli Ncube as a “ritualistic formality.”
Ncube delivered a ZWL$927.3 budget with a GDP growth projection of 5.5% in 2022 and total revenue collections projected at ZWL$850.8 billion (16.8% of GDP). In a Twitter thread in response to Ncube’s budget presentation, Biti said:
<blockquote>
That Budget presentation was made by a man just going through a ritualistic formality. It was a sordid exercise in mediocrity, mendacity &amp; lackadaisity.
A lacklustre &amp; vacuous presentation bereft of substance or form. One totally oblivious to the structural challenges facing Zimbabwe.
As we argued before Zim faces humongous structural challenges which will not be resolved by imposing punitive taxes that punish working people.
A brave approach was needed to deal with exchange rate distortions &amp; multiple pricing system. Truth is de-dollarization has failed dismally.
The failure to address the structural issues around currency, the auction rate, deficits, corruption &amp; the debt question makes the budget irrelevant.
The illicit takeover of RBZ s legacy debts, 3 years after the RBZ Debt assumption Bill is criminal. RBZ is a haven for crime &amp; deficits.
We have always argued that the class of 2018 is the worst Government in the history of Governments. We respectfully submit that the 2021 Budget is proof beyond reasonable doubt of this contention.
</blockquote>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

2022 National Budget "Bereft Of Substance Or Form" - Biti

Finance and Economic Development Minister Mthuli Ncube has raised the local currency tax-free bonus threshold from ZWL$25 000 to ZWL$100 000.
Presenting the 2022 national budget statement in Parliament on Thursday afternoon, Ncube also announced an increase in the foreign currency tax-free bonus threshold from US$320 to US$700. Said Ncube:
<blockquote>
I also propose to review the local currency tax-free bonus threshold from ZWL 25 000 to ZWL 100 000 and the foreign currency tax-free bonus threshold from US$ 320 to US$ 700, with effect from 1 November 2021.
</blockquote>
Ncube also proposed to raise the excise duty on cigarettes, saying this will help to curb illicit flows and also mobilise additional revenue to the Fiscus. He said:
<blockquote>
In order to benchmark excise tax rates with the practice in the region, thereby curbing illicit flows and also mobilise additional revenue to the Fiscus, I propose to increase excise duty on cigarettes from 20% + US$5.00/1000 cigarettes to 25% + US$5.00/1000.
I, further, propose to introduce a flat rate of excise duty on energy drinks at a rate of US$0.05/litre, or the local currency equivalent.
Incidences of non-communicable diseases, in particular, cancer, diabetes and hypertension are on the increase.
</blockquote>
Ncube announced that with effect from 1 January 2022, the non-taxable portion of the local currency tax-free threshold of retrenchment packages will be adjusted. He said:
<blockquote>
In order to preserve the value of retrenchment packages, I propose to review the non-taxable portion of the local currency tax-free threshold from the greater of ZWL50 000 or 1/3 of the retrenchment package, whichever is higher, up to a maximum of ZWL240 000, to the greater of ZWL400 000 or 1/3 of the retrenchment package, whichever is greater, up to a maximum of ZWL2 million, for income earned in local currency.
This measure takes effect from 1 January 2021 (sic).
</blockquote>
Companies that employ people living with physical challenges will get a tax credit of US$50 or local currency equivalent per month per additional employee recruited. Said Ncube:
<blockquote>
The NDS1 thrust is to protect vulnerable groups through new interventions and enhancement of existing programmes since people living with physical challenges face significant barriers to employment.
I, therefore, propose to introduce a tax credit of US$50 or local currency equivalent per additional employee recruited per month for corporates that employ physically challenged persons.
The credit will, however, be limited to a maximum of US$2 250 per year of assessment.
This measure takes effect from 1 January 2022.
</blockquote>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Tax-free Bonus Threshold Raised To $100 000

Zimbabwe Congress of Trade Unions (ZCTU) secretary-general, Japhet Moyo has called on Finance and Economic Development Minister, Mthuli Ncube to be realistic and allocate more resources towards welfare expenditure in the 2022 national budget.
Ncube presents the 2022 national budget this Thursday afternoon in Parliament.
Speaking to NewZimbabwe.com yesterday, Moyo said Ncube should deliver a US dollar-denominated budget as this will make it easy to budget in the current inflationary environment. Said Moyo:
<blockquote>
Apart from this, workers in Zimbabwe expect a meaningful reduction in taxes and levies. 
Zimbabweans are some of the unjustifiably highly taxed people in the world and there is a need to retain more money in the pockets of citizens by reducing taxes.
It does not make sense to tax a worker who earns a wage that is way below the Poverty Datum Line (PDL).
More money in the pockets of workers will stimulate aggregate demand and is good for the growth of the economy.
</blockquote>
The ZCTU top official urged Ncube to allocate 15% of the national budget to health in line with the Abuja Declaration of 2001.
He also called upon the government to increase funding for the education ministry to between 4% and 6% of the Gross Domestic Product (GDP) as per the Dhaka Declaration.
Moyo slammed Ncube for declaring budget surpluses in four successive years but at the same time failed to use the extra funds to cater for the welfare of pensioners and the elderly.
<h4>More: <a href="https://www.newzimbabwe.com/mthuli-ncubes-2022-budget-should-be-realistic-zctu/">NewZimbabwe.com</a></h4>

ZCTU Wants A Realistic 2022 National Budget

The Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare has implored Finance and Economic Development Minister, Mthuli Ncube, to prioritise the improvement of salaries and benefits of civil servants when he presents the 2022 national Budget next month.
The Committee recommended that civil servants’ salaries and monthly pension payouts should be pegged above the poverty datum line (PDL).
According to the Consumer Council of Zimbabwe, the cost of living for a family of six is nearly ZWL$50 000.
It recommended Ncube to focus on growing the revenue base so as to offer some relief to Government workers, “for example tapping into taxing the informal sector”.
The Committee also said Ncube should address inconsistencies in the currencies being used in the country which has seen fuel and rentals being charged in US dollars, while salaries remain in Zimbabwe dollars.
It further recommended that the US$50 per week foreign currency facility being disbursed through Bureaux de Change should be made available through the mainstream banking sector to make it accessible to all.
Additionally, the Committee recommended that Ncube should consider introducing mobile Bureau de Changes to cater for rural areas.
It added that the 2022 national Budget should allocate more funding towards supporting social welfare programmes targeting vulnerable groups, particularly persons with disabilities.
The Committee recommended that the creation of an electronic database of persons with disabilities should be prioritised.
<h4>More: <a href="https://www.herald.co.zw/committee-on-civil-servants-salaries-set/">The Herald</a></h4>

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