MPs Accuse Finance Ministry of 'Violating Constitu...

MPs Accuse Finance Ministry of 'Violating Constitution'

By Nyashadzashe Ndoro Chief Reporter

In a heated parliamentary session, lawmakers in Zimbabwe engaged in a sharp and critical debate over the 2025 Mid-Term Budget, with several Members of Parliament accusing the Ministry of Finance of bypassing legal and constitutional provisions.

The debate was marked by accusations of fiscal mismanagement, including the unauthorized use of unallocated reserves and a failure to pass a Financial Adjustment Bill for excess expenditure since 2015. Lawmakers expressed deep skepticism about the integrity of the government's economic data, arguing that official growth figures obscured the country's worsening economic hardships.

The debate, which took place during a full sitting of Parliament on Tuesday, was triggered by the presentation of the Mid-Term Budget Review and the 2026 Budget Strategy Paper under the theme "Enhancing Drivers of Economic Growth in Transformation towards Vision 2030.”

Economic Growth and Projections

Masvingo South MP Tanatsiwa Mukomberi opened the debate by emphasizing the Government’s economic growth projections, noting that the 2025 budget is grounded in an expected 6% GDP growth driven primarily by over 21% growth in agriculture. He underscored that “the GDP estimate for 2025 is projected to ZWL1.5 trillion, up from ZWL822.9 billion in 2024,” which suggests a rise in per capita income to above USD 3,000, aligning Zimbabwe with its ambitions of attaining upper-middle-income status by 2030.

However, Norton MP Richard Tsvangirai presented a more critical view, cautioning that “these numbers are not worth celebrating” given rising unemployment, worsening poverty, and shrinking formal jobs. He pointed out that “junior lecturers who once earned USD2,250 now take home just USD230 — an 87% pay cut.” He warned that “growth without equity is not only unjust, it is fragile and even dangerous.”

Questioning Data Integrity

Several MPs challenged the reliability of the rebased GDP figures presented by ZimStat. Mbizo MP Corban Madzivanyika argued that major reported surges “such as a 700% increase in electricity and gas and a 1,200% increase in manufacturing... defy logic considering ongoing load shedding and the informal nature of most businesses.” He warned that these “statistics are window-dressed and manipulated to achieve national development goals but obscure real economic hardships.”

Similarly, Dzivarasekwa legislator Edwin Mushoriwa echoed concerns about the integrity of the fiscal data and accused the Ministry of Finance of bypassing legal requirements on supplementary budgets and condonation bills: “Since 2015, this House has not passed a Financial Adjustment Bill despite excess expenditure. The Minister has violated constitutional provisions by using the unallocated reserve without Parliament’s approval.”

Revenue Collection and Tax Burden

On revenue collection, MPs highlighted a shortfall compared to targets. Hon. Nkani noted that “we were expecting ZWL118 billion but collected only ZWL101 billion by mid-year,” and called for Government to consider acquiring shares in major companies to increase revenue streams. He also flagged the fact that “76% of businesses are informal, making tax collection difficult.” Hon. Mushoriwa criticized the tax system as regressive: “Value Added Tax contributes 25.3% of revenue and disproportionately hurts consumers, while the IMTT punishes the poor.”

Transparency and Budget Utilization

Concerns were voiced about disproportionate budget spending. Joseph Nkani lamented that “only 0.2% of devolution funds expected by mid-year were disbursed, starving rural communities of critical support.” Clifford Hlatywayo noted that “capital expenditure accounts for only 24.1% of spending, while recurrent expenditure overwhelms the budget.”

Mushoriwa went further to highlight institutional weaknesses: “The Audit Office received only 10% of its budget, undermining accountability,” and questioned why the Ministry of Finance “did not submit financial statements to the Auditor General on time.” He accused ministries of “entering into large contracts without Treasury knowledge, breeding fiscal indiscipline.”

Government’s Response

In response, Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, defended the growth figures as corroborated by the International Monetary Fund, urging MPs to “summon ZimStat to scrutinize the data collection methodology.” He explained the inflation indexing technicalities causing perceived revenue shortfalls in Zimbabwean dollars while actual collections in US dollars are on track.

The Minister acknowledged challenges such as low devolution fund utilization and agreed that “more efforts are needed to educate local authorities on accessing these funds.” On borrowing, he explained that recent domestic debt increases covert legacy debts assumed from the Reserve Bank and stressed that “the Government continues to support youth and women through increased access to loans.”

The Minister of Justice, Legal and Parliamentary Affairs, Ziyambi Ziyambi, thanked Members for the “robust and well-researched debate,” urging them to keep their contributions in mind as Parliament prepares for the 2026 budget cycle.