The Ministry of Transport has exceeded its 2024 national budget allocation by 245% within the first six months of the year, according to a report by the Parliamentary Budget and Finance Committee. The ministry, which received ZiG 4.2 billion from the Treasury for transport infrastructure projects, is now in urgent need of additional funds to sustain operations through the end of the year.
Key projects funded by the ministry include the completed upgrade of the Harare-Beitbridge highway, ongoing work on the Harare-Chirundu highway, and the construction of the Mbudzi Interchange. Other initiatives include upgrades to the Harare-Kanyemba Road and various projects under the Emergency Road Rehabilitation Programme in Harare and cities nationwide. In preparation for the SADC Summit, which Zimbabwe hosted in July, the ministry spent US$88 million on road rehabilitation.
Clemence Chiduwa, chairperson of the committee and former Deputy Finance Minister, presented the 2024 Mid-Term Budget and Economic Review in Parliament on Tuesday. He highlighted concerns over the financial management of certain ministries, noting that while some appeared to have managed their budgets well, others had already exhausted their allocations by mid-year.
“The transport ministry utilised 245% of its budget allocation and still requires more resources to complete ongoing projects,” Chiduwa said. “The situation calls for a supplementary budget unless the unallocated reserve, which constitutes 10% of the approved budget, can cover the remaining operational needs for the year.”
Other ministries that have exceeded their budget allocations include the Zimbabwe Council of Chiefs (119%), the Office of the President and Cabinet (92%), the Ministry of Finance (85%), and the Ministry of Local Government (72%).
In contrast, the Ministry of Education has only used 26% of its allocated budget, despite facing significant challenges, including a lack of infrastructure across the country.
The Budget and Finance Committee concluded that the policy review aligned well with the Monetary Policy Statement, helping to achieve a balance between monetary and fiscal policies. However, Chiduwa emphasized that the government should consider further policy adjustments to minimize potential economic disruptions.
The report underscores the growing need for more efficient budget management and resource allocation, especially in critical sectors like transport, where infrastructure development remains a priority.