Zimbabwe Imposes Spending Limits on Government Agencies
Treasury has imposed spending limits on ministries, departments and agencies for November and December as coffers run dry.
Government workers are receiving annual bonuses, and Treasury is putting essential expenses like addressing food shortages and financing agriculture support in 2024-2025 first.
A circular, sent to Permanent Secretaries and the Clerk of Parliament dated November 13, warns that non-wage Budget support will be restricted during this period.
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Finance Economic Development and Investment Promotion Permanent Secretary Mr George Guvamatanga urged Government agencies to be mindful of their expenses and make them a priority.
Zimbabwe Imposes Spending Limits on Government Agencies
“As you may be aware, the local currency unit (ZWG) recently depreciated by 43% against the United States dollar, resulting in a substantial mismatch between revenue inflows, collected in some cases with a one-month lag and local currency expenditures that immediately adjusted to the new exchange rate, in the process severely constraining fiscal space for the last quarter of 2024.
“Given the consequent limited fiscal space and the need to mobilise additional resources to fund critical inescapable expenditures that include the 2024 bonus award, food deficit mitigation support, 2024-2025 agriculture input support, and utilities among other critical requirements, Treasury wishes to advise that non-wage budget support for the months of November and December 2024 will be severely constrained.
“Ministries, departments and agencies are, therefore, requested to prioritise their expenditure commitments during this period,” said Mr Guvamatanga.
