Govt acts on council budgets
MISPLACED priorities and lack of financial discipline has seen some local authorities presenting proposed budgets with luxury vehicles for their top brass without regard for procuring basic equipment for service delivery, a development that has left Government approving only a few out of the 92 council budgets, a Cabinet Minister has said.
Fielding questions from participants during the Smart Cities and Devolution Master Class 2024 at a Nyanga hotel on Wednesday, Local Government and Public Works Minister, Honourable Winston Chitando, said some budgets proposed the purchasing of luxurious vehicles without any mention of buying crucial equipment for service delivery.
“We are sending them back, and are serious about that. In line with His Excellency, President Mnangagwa’s “call to action” for all local authorities, we are engaging them (local authorities) to ensure that they budget for what is really important to their mandate.
“You find some local authorities proposing to purchase GD6 vehicles on their budget, yet there is nothing like refuse trucks, even the cheapest refuse trucks. We have approved a few of these budgets because of that. We are sending them back. It is a continuous engagement process that we hope will help the local authorities instil financial discipline in their work,” said Minister Chitando.
The Local Government Minister urged local authorities to desist from selling land to pay salaries. “It is sad that we still have a good number of local authorities selling land in order to make up for salary arrears. Land must never be sold to pay salaries. Money obtained from the sale of land must go towards improved service delivery and investment for income generation for the local authority.
“Some of them end up selling land to pay salaries, simply because a considerable number of local authorities are overstaffed. Acceptable standards denote that a local authority must never use more than 30 percent of its revenue on salaries,” he said.
He also said about 50 percent of the country’s local authorities are still in arrears with regards to statutory payments, including pension funds that they collect.
Responding to concerns raised on the delays of the disbursement of devolution funds, Minister Chitando said funds meant to finance the country’s devolution agenda are announced during the national budget, while the actual disbursement is done as and when Treasury collects revenue.
Minister Chitando said: “What happens is that the Minister of Finance, Economic Development and Investment Promotion announces his proposed budget, wherein he spells out, among other things, the funds he intends to allot to devolution. The proposed budget then undergoes debate in Parliament and all other processes before it is confirmed. Thereafter, the Ministry of Finance, Economic Development and Investment Promotion then collects revenue from its different sources. Funds for devolution are then disbursed as and when revenue is collected during the year under which that budget is running. So if the Minister of Finance, Economic Development and Investment Promotion states a certain amount in his budget, it does not translate to immediate disbursement. Yes, we are equally concerned with the exchange rate disparities that exist between the time the budget is announced and when the funds are disbursed but that is a process which has to be followed.”
The Smart Cities and Devolution Master Class 2024 ran under the theme: “Towards smart cities and beyond”.
In wrapping up his presentation, Minister Chitando reiterated the call to reverse the declining quality of service delivery in towns and cities, saying sound local governance must be implemented to improve socio-economic development by 2030.