Zimbabwe's 2024 Budget: A Harsh Blow to Citizens

Finance Minister: Professor Mthuli Ncube

 

By Prince Gora

The recent announcement of Zimbabwe's Z$59.5 trillion 2024 budget has triggered strong criticism and dismay across the nation, with Finance Minister Mthuli Ncube at the center of the storm. Ncube unveiled a budget seemingly poised to increase government revenue through a series of tax hikes and fee escalations, drawing intense scrutiny and denunciation from various quarters.

Ncube's budget features a spectrum of price hikes and tax increments across several facets of everyday life:

- Toll gate fees surged by 150 percent, while passport costs nearly doubled, drawing fierce rebuke from the opposition, labeling the budget as "anti-people."

- The Finance Minister justified these measures, citing the need to consolidate stability and preserve disposable incomes within a framework aiming to maintain a sustainable budget deficit.

The budget, allocated with Z$51.2 trillion for tax revenues and Z$2.7 trillion for non-tax revenues, stands against a backdrop of rising government expenditure and a Z$9.2 trillion budget financing gap. Ministries requested over Z$110 trillion, far exceeding the available budget envelope of Z$58.2 trillion, underscoring challenges in resource allocation.

Despite prioritizing sectors like security, education, and health, the budget's pronounced emphasis on security services drew criticism, fueling accusations that the government values guns over improving crucial public services.

Furthermore, the forecasted economic growth of 3.5 percent in 2024, primarily driven by mining and food services but overshadowed by a projected contraction in agriculture, poses additional concerns about the nation's economic trajectory.

The budget's introduction of new taxes, including a sugar levy and a 1 percent "wealth tax" on properties over US$100,000, faced heavy backlash. Critics lamented that these measures would further strain citizens already grappling with financial burdens.

CCC MP Fadzayi Mahere lambasted the budget as "anti-people, anti-investment, anti-growth, and anti-productivity," characterizing the fiscal policy as detrimental to the nation's economy and its citizens. Economist Tinashe Murapata highlighted concerns about increased taxes driving economic informality and encouraging corruption.

The budget, presented in Zimbabwe dollars despite the economy's largely dollarized status, prompted skepticism about the stability of projected figures in the face of inflationary pressures, diminishing their real value over time.

In summary, Ncube's 2024 budget, aimed at bolstering government finances, has triggered widespread discontent due to its hefty tax increases and fee escalations, raising concerns about its impact on citizens' livelihoods and the nation's economic trajectory.