In a recent development, the Treasury has announced spending limits for ministries, departments, and agencies for November and December. This decision comes as the government faces a shortage of funds in its coffers. George Guvamatanga, the Permanent Secretary for Finance Economic Development and Investment Promotion, has urged government agencies to be mindful of their expenses and prioritize them accordingly.
The annual bonuses for government workers are given priority, along with essential expenses such as addressing food shortages and financing agriculture support for 2024-2025. A circular dated November 13, sent to Permanent Secretaries and the Clerk of Parliament, warns that non-wage Budget support will be restricted during this time.
Guvamatanga explained that the local currency unit (ZWG) has recently depreciated by 43 percent against the United States dollar. This has resulted in a significant mismatch between revenue inflows, sometimes collected with a one-month lag and local currency expenditures that immediately adjusted to the new exchange rate. Consequently, the fiscal space for the last quarter of 2024 has been severely constrained.
Given the limited fiscal space and the need to mobilize additional resources, the Treasury has advised that non-wage budget support for November and December 2024 will be severely constrained. Critical inescapable expenditures, including the 2024 bonus award, food deficit mitigation support, 2024-2025 agriculture input support, and utilities, among others, will be given priority.
Government agencies have been requested to prioritize their expenditure commitments during this period to ensure that essential expenses are met while managing the limited resources available. The Treasury's decision to impose spending limits highlights the government's challenges in managing its finances during economic uncertainty.
The annual bonuses for government workers are given priority, along with essential expenses such as addressing food shortages and financing agriculture support for 2024-2025. A circular dated November 13, sent to Permanent Secretaries and the Clerk of Parliament, warns that non-wage Budget support will be restricted during this time.
Guvamatanga explained that the local currency unit (ZWG) has recently depreciated by 43 percent against the United States dollar. This has resulted in a significant mismatch between revenue inflows, sometimes collected with a one-month lag and local currency expenditures that immediately adjusted to the new exchange rate. Consequently, the fiscal space for the last quarter of 2024 has been severely constrained.
Given the limited fiscal space and the need to mobilize additional resources, the Treasury has advised that non-wage budget support for November and December 2024 will be severely constrained. Critical inescapable expenditures, including the 2024 bonus award, food deficit mitigation support, 2024-2025 agriculture input support, and utilities, among others, will be given priority.
Government agencies have been requested to prioritize their expenditure commitments during this period to ensure that essential expenses are met while managing the limited resources available. The Treasury's decision to impose spending limits highlights the government's challenges in managing its finances during economic uncertainty.
