CCC Shadow Finance Minister Seeks Explanation For US$3 Billion Budget Deficit

Corban Madzivanyika, the Citizens Coalition for Change (CCC) Shadow Minister of Finance, has demanded that Finance and Economic Development Minister Mthuli Ncube explain a $3 billion budget deficit that was incurred after Zimbabwe abandoned the Zimbabwe dollar and adopted a new gold-backed currency, the ZiG in April, reported CITE.

Speaking to journalists shortly after Ncube’s delivery of the Mid-Term Review statement on Thursday, Madzivanyika said the approved 2024 budget was around ZWL$58 trillion, which is equivalent to approximately $9.7 billion. He added:

Fast forward to July 2024, in his Mid-Term fiscal review statement, the minister says the current budget is now ZiG 87 billion, which is equal to 6 billion dollars using a rate of 14.5. It is so worrisome that the budget has been eroded by close to 3 billion dollars.

Madzivanyika requested a detailed explanation from Ncube regarding this significant deficit. However, the debate was adjourned by the Speaker before MPs debated it.

Ncube’s explanation for the budget shortfall was simply that “the introduction of the ZiG as legal tender on 5 April 2024 has necessitated reconfiguration of the 2024 approved national budget to reflect the change of our currency.”

This explanation, however, was deemed insufficient by Madzivanyika, who asked for a thorough accounting of the missing funds.

Ncube’s mid-term review also revealed that the government spent more funds than revenue collections during the first six months of 2024. Said Ncube:

In terms of performance during the first six months of the year, revenue collections amounted to ZiG 36.5 billion against expenditures of ZiG 38.9 billion dollars.

Ncube also revised the projected economic growth from 3.5 per cent to 2 per cent, citing the impact of the El Niño-induced drought on the agricultural sector.

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