Unpacking the budgeting process

BUDGETING processes are governed by the Urban Councils Act [Chapter 29:15] Section 288, as read together with the Public Finance Management Act (PFMA) [Chapter 22:19], Section 47. Before the promulgation of the PFM Act, budgets were approved by councils and copies submitted to the Minister of Local Government and Public Works for his information. However, the PFM Act supersedes the Urban Councils Act and assigns the roles of budget approval to the minister. In addition to this legislation, the Ministry of Local Government and Public Works periodically issues circulars guiding and setting the minimum standards that councils should comply with in drafting budget estimates for each year. In the circular, Government usually gives direction in the following areas amongst other: Linking the budget to Government policies like NDS1, climate change and resilience programmes, gender and disability mainstreaming, monitoring and evaluation, IPSAS accounting standards implementation, ICTs and digitalisation programs, valuation rolls, devolution programs etc. Formulating a council budget generally follows the following steps:

Budget performance reviews are a continuous process usually done monthly, quarterly, by-annually and also at year-end. However, to facilitate crafting of new estimates for the coming year, half year performance review is usually done in July, considering performance for the period January to June of the current year. The January to June trend is also used to make a forecast to year-end for all line items in order to base coming year budget figures. Stakeholder engagement meetings usual held once per quarter provide a platform on which the general public and ratepayers are updated on service delivery progress. Key reports can also be accessed on City of Mutare Chatbot no +263771067779.

Sector specific stakeholder consultation meetings are held around the city and these are usually led by the Finance Department team. The key stakeholders consulted comprise of the business community, churches, schools, informal traders, junior council, youth, women, persons with disabilities, media, residents and ratepayers associations, workers union and other stakeholders. Stakeholders are afforded the opportunity to give their input into proposed projects to be funded either by council’s own funds, devolution funds, loans and ZINARA transfers.

The Year 2024 budget consultations were held through diversified ways to improve participation of residents and ratepayers in this critical planning process. The following platforms were used, WhatsApp, physical meetings, Chat-robot, questionnaires (both physical and Google questionnaires), newspapers and the radio. The 2024 budget has been the most participated budget consultation with usual total participants increasing by 15 times from prior year statistics.

All budget submissions are consolidated by the Finance Director before consideration by the management committee, budget committee, finance committee and finally full council. Proposed tariffs are made in line with a cost build up done using a tariff model that encompasses all input costs that are incurred in producing municipal services. Special rates according to Urban Councils Act [Chapter 29:15] Section 273, are taken into consideration for special projects and for Mutare City Council, the current special rates are special public street lighting rates, special roads rates, special fire rates and special education rates.

In accordance with the Urban Councils Act [Chapter 29:15], the proposed tariff schedules are advertised in two locally available newspapers calling for objections from the stakeholders. The objection window period is 30 days from the date of the first publication. Sector and ward budget consultations can be held concurrently with objection consideration period. Advertising is also considered as part of budget consultation, hence the two can run concurrently.

Any objections received before the lapse of the 30-day objections period are put together and analysed for consideration of council before adoption of the budget proposals. Section 219(3) of the Urban Councils Act directs how objections should be considered before council can recommend the budget for approval by the responsible minister.

Three copies of the draft budget adopted and recommended by full council are sent for approval by the Minister in line with Section 47 of the Public Finance Management Act. The budget is reviewed and appraised by the ministry’s financial advisory section before it is recommended for approval by the minister. If there are necessary adjustments required to the budget to align it to the law, such corrections are done before the minister approves it. The budget should first be aligned to national laws and circulars before it is approved for implementation. Once the minister is satisfied with the budget submission , he/she approves the budget and the local authority is then allowed to implement the same. The circle is followed through again every year.