Zimbabwe Finance minister Mthuli Ncube has announced that the government will not have the funds to meet the demands of ministries in the 2023 national budget.
This follows complaints from legislators that government departments are severely underfunded. Ncube stated that the government’s budget of $4.2 trillion can only cover a third of the expenditure requested by the ministries for next year.
Reports from parliamentary portfolio committees have also pointed out that ministries are severely underfunded.
Ncube explained that the government’s current cash budgeting system, which limits spending to only the revenue collected, has caused delays in the distribution of budgeted resources to ministries and government departments.
In the event of unexpected shocks, Ncube said that the Treasury will request a supplementary budget. Ncube also rejected calls from legislators to dollarize the economy, stating that the government will maintain its multi-currency regime.
The local currency has been rapidly losing value against the US dollar, leading some companies to price their goods and services exclusively in foreign currency as a hedge against losses.