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Parliament has said the ZWL$474.7 billion (11.2%) of the ZWL$4.5 trillion 2023 national budget allocated to the Ministry of Health and Childcare is inadequate.
Presenting the report by the Parliamentary Portfolio Committee on Health and Child Care on the 2023 health budget, acting chairperson of the committee Nicola Watson said:
<blockquote>
This implies that the health sector will continue to significantly rely on out-of-pocket expenditures and donor assistance.
This is not sustainable given the low disposable incomes among the public and the unpredictability of donor support.
</blockquote>
Watson said the 11.2% allocation towards health was below the 15% budget allocation stipulated by the Abuja Declaration.
In 2001, the African Union (AU) member states signed the Abuja Declaration, thereby pledging to allocate at least 15% of their national budgets each year to improve their healthcare systems. Said, Watson:
<blockquote>
All the hospitals across the country were grossly underfunded in the 2023 national budget.
Central hospitals received $113.4 billion, while provincial hospitals received $35.02 billion.
This level of financing will leave them incapacitated to deliver services.
It is of concern that there is gross under-investment in medicines. It is now normal for patients to buy basic medicines like painkillers; and the lack of medical supplies at hospitals has seen the mushrooming of pharmacies that are fleecing patients of their hard-earned cash.
The 2023 national budget is grossly inadequate to address the massive brain drain.
</blockquote>
The committee also accused the government of failing to adequately remunerate health workers resulting in brain drain. It said:
<blockquote>
Health workers continue to earn salaries in local currency, yet they pay for expenses in United States dollars.
Family health was allocated $12.09 billion and this constitutes only 37% of its bid.
This is grossly inadequate given the level of maternal deaths and health needs at hospitals.
</blockquote>
| <a href="https://www.newsday.co.zw/local-news/article/200004754/health-sector-faces-doom-mps">NewsDay</a>

Pindula News

All Hospitals "Grossly Underfunded In The 2023 National Budget" - MPs

Figures from the <a href="https://www.pindula.co.zw/Zimbabwe_National_Statistics_Agency_(ZIMSTAT)">Zimbabwe National Statistics Agency (ZIMSTAT)</a> suggest that November month-on-month inflation slowed to 1.8% while year-on-year slowed to 255 per cent.
In October, Zimbabwe’s annual inflation was <a href="https://zero.pindula.co.zw/zimbabwes-annual-inflation-slows-down/">268.79% in October</a> while month-on-month inflation was <a href="https://zero.pindula.co.zw/zimbabwes-annual-inflation-slows-down/">3.2% in October</a>. Pindula News presents an update issued by ZIMSTAT this Monday:
<blockquote>
<h2>CONSUMER PRICE INDEX NOVEMBER 2022</h2>
The month-on-month inflation rate in November 2022 was 1.8 percent shedding 1.4 percentage points on the October 2022 rate of 3.2 percent.
The year-on-year inflation rate (annual percentage change) for the month of November 2022 as measured by the all items Consumer Price Index (CPI) stood at 255.0 percent.
The CPI for the month ending November 2022 stood at 13,349.42 compared to 13,113.95 in October 2022 and 3,760.86 in November 2021. 
</blockquote>
Analysts attribute the drop to tight fiscal and monetary policy measures.
Meanwhile, Finance and Economic Development Minister, Professor Mthuli Ncube is targeting to keep monthly inflation at between 1 – 3% in 2023 while annual inflation is expected to drop to two digits.
<a href="https://www.pindula.co.zw/FBC_Holdings">FBC Holdings Limited (FBC)</a> has, however, warned that the <a href="https://zero.pindula.co.zw/2023-budget-allocations-to-government-departments/">anticipated increased government expenditure for 2023</a> may <a href="https://zero.pindula.co.zw/anticipated-increased-govt-expenditure-may-threaten-inflation-outlook-fbc/">threaten Ncube’s inflation outlook.</a>
FBC which is one of Zimbabwe’s top financial institutions said unless carefully managed, there is likely to be pressure on money supply growth in the coming months owing to the government’s increased expenditure ahead of the 2023 harmonised elections and higher spending to fund the 2022/23 farming season.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe Inflation Slows In November 2022 - ZMSTAT

<a href="https://www.pindula.co.zw/FBC_Holdings">FBC Holdings Limited (FBC)</a> says the anticipated increased government expenditure for 2023 may threaten Zimbabwe’s inflation outlook.
For 2023, the government has projected that the month-on-month inflation will be between 1% and 3% while annual inflation is expected to drop to two digits. 
FBC says the ZW$4.5 trillion (US$6.95 billion) 2023 National Budget announced by Finance minister Mthuli Ncube will likely worsen the inflation in Zimbabwe, according to <a href="https://www.newsday.co.zw/business/article/200004217/govt-likely-to-print-money-to-fund-deficit">NewsDay</a>.  
FBC securities subsidiary, FBC Securities Private Limited (FSPL) wrote to its clients in its post-2023 National Budget analysis:
<blockquote>
Month-on-month inflation target range has been set at between 1% and 3%. Global inflation shocks resulting from geopolitical tensions, rising food and energy prices as well as supply chain disruptions present downside risks to the inflation outlook.
Ahead of the 2023 harmonised elections and higher spending to fund the 2022/23 farming season, there is likely to be pressure on money supply, which if not carefully managed may trigger inflationary pressures. Government has, however, reiterated intentions to maintain its hawkish monetary stance in a bid to keep inflation under control.”
The Minister of Finance and Economic Development, Mthuli Ncube, presented the 2023 National Budget under the theme Accelerating Economic Transformation. The presentation comes on the backdrop of elevated inflation and currency devaluation that prompted tightening of the central bank’s monetary policy.
Annual inflation as at end of October was 268,8% against an initial target of 25%-35%, later revised to 52-58%. For 2023, government has set a month-on-month target of between 1% and 3% and annual inflation to drop to two digits. Money supply pressure from anticipated increased government expenditure may threaten this inflation outlook, if not carefully managed.
Unless carefully managed, there is likely to be pressure on money supply growth in the coming months owing to government increased expenditure ahead of the 2023 harmonised elections and higher spending to fund the 2022/23 farming season.
</blockquote>
The budget is the highest expenditure requirement by the government ever in decades and has a funding deficit of nearly ZW$600 billion that Ncube said will be met by:
<blockquote>
i). the issuance of Treasury Bills worth $82.2 billion,
ii). Victoria Falls Exchange Bonds ($95.2 billion) and
iii). an expected loan of US$400 million from the African Export-Import Bank.
iv) .changes in bank balances of ZW$10 billion 
</blockquote>
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

"Anticipated Increased Govt Expenditure May Threaten Inflation Outlook" - FBC

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