Despite this requirement enshrined in Section 301(3) of the Constitution, the government continues failing to meet the five percent threshold outlined since the introduction of the Inter-Governmental Fiscal Transfers in 2019.
The law mandates that “not less than five percent of the national revenues raised in any financial year must be allocated to provincial and local tiers of government.”
However, allocations between 2019 and 2023 ranged from just 0.5 percent to 2.9 percent.
In 2023, only 23 percent of the budgeted ZiG 193.2 billion for devolution was disbursed, while in 2024, 26 percent of the ZIG4.1 billion was released to support devolution projects.
Appearing before Parliament last week, the finance minister, defended the government’s inability to meet the five percent mark, saying although the amounts are budgeted, actual cash disbursements are affected by fluctuating revenue inflows and the need to live within the State’s means.
“For the year 2023, our disbursement was 23 percent. In 2024, it was only 26 percent. Of course, we always strive to meet 100 percent disbursement or the full five percent…However, we always come out at about a third of that.
There are many reasons,” Prof Ncube said.
“The main one is there is a difference between these disbursements and cash flow outlays. Cash flow outlays usually lag because we live within our means in terms of the cash support for the disbursements.”
Prof Ncube added that government revenue is not received in equal portions throughout the year, making it difficult to evenly disburse funds.
“We do not have equal revenue inflows quarter by quarter for the four quarters of the year. You find that the bulk of our revenue inflows are in the last quarter,” he said.
“This also creates challenges with the inflows of cash and militates against us meeting the five percent target for devolution funding.”
In a bid to address the lag in disbursements, the finance minister revealed the Treasury is considering borrowing domestically towards the end of the third quarter, and repaying those loans with revenues collected in November and December.
“This is a strategy to smooth the issue of revenue receipts, which are uneven through the year,” he explained.
Despite these challenges, Members of Parliament expressed concern and frustration, noting the five percent allocation is not negotiable, as it is a constitutional requirement.
“It is a must… To say that we have got 23 percent and 24 percent to 27 percent in successive years, do you think that is sustainable, when we are dealing with a must-case scenario?” challenged Mbizo MP Corban Madzivanyika.
Madzivanyika insisted that Parliament expects to see at least 87 percent to 90 percent disbursement by the end of September, which would reflect good faith efforts to meet the constitutional obligation.
In response, Ncube pointed to other administrative bottlenecks, including delays caused by local authorities who are required to submit detailed, auditable project proposals before funds can be released.
“You find that the process for disbursement involves the submission of projects.
The local authorities have to submit projects that are ready for funding and they also have to invest in project preparation. This is important. Also, we have to consider any acquittals and so forth, engineering certificates, those that are in project finance, know what I am talking about,” Ncube said.
“Those processes also are necessary for the audit trail but then they slow down disbursements because you can only disburse against what we think has met the minimum standards in terms of what the auditors will accept.
So, it is an involved process. You do not just give away money like that. There has to be a project that will absorb those resources.
That project has to be ready. The local authorities have to be ready to receive those resources.”
In a specific request for information, Emakhandeni-Luveve MP Discent Bajila asked for a breakdown of disbursements made to individual local authorities in Matabeleland North, Matabeleland South, Masvingo, Midlands, and Mashonaland East.
Ncube responded that while the Treasury allocates the funds, the actual disbursement to local authorities is managed by the Ministry of Local Government and Public Works.
“Cumulative disbursements made by Treasury during 2023 stood at ZiG$44.9 billion against an approved ZiG$193.2 billion. In 2024, a total of ZiG1 billion was availed against a budget of ZiG4.1 billion,” he said.
Prof Ncube said Treasury would coordinate closely with the Ministry of Local Government to agree on detailed implementation and cash flow plans to ensure projects are funded and implemented on time.
As part of this effort, the minister said the government is processing resources equivalent to US$30 million in June 2025 to support the devolution agenda.
Rushinga MP, Tendai Nyabani, however, pressed for more action to provide timely and full release of the devolution funds, noting their importance in rural development.
“These devolution funds solve a lot of problems like constructing schools, clinics and boreholes,” said Nyabani.
“This devolution fund is as good as salt in our relish.
What can be done to ensure that five percent of the budget can be released on time to improve people’’ living conditions?”
Ncube acknowledged the value of the funds in rural communities and reiterated the government’s broader efforts to support rural development, including the Pfumvudza/Intwasa agricultural programme, dam construction and road building.
“Devolution funds are only one part of how we impact the lives of our rural-based citizens. It is correct that we should really make every effort to expedite and increase our disbursement for devolution funding.”
Originally published on The Zimbabwean
Source: Thezimbabwean
