Parliament Committee Criticizes Finance Ministry Over Missing GDP Data

Zimbabwe’s Budget and Finance Parliamentary Committee has expressed frustration after Finance Ministry officials failed to provide the country’s GDP during a crucial budget consultation on Monday.

Ministry officials, led by Acting Chief Director Bernard Mupuriri and Finance Director Kudakwashe Zata, presented the Ministry’s expenditure, revealing an overexpenditure of 60% from January to September 2024.

Despite detailing their budget overrun, the officials could not provide Zimbabwe’s current gross domestic product (GDP). This omission left lawmakers exasperated, with some considering abandoning the meeting altogether.

Committee chairperson Clemence Chiduwa questioned the officials regarding Zimbabwe’s GDP, stressing its importance in understanding the government’s capacity to collect revenue. However, no immediate answer was given.

Chiduwa emphasized the importance of GDP in evaluating the revenue target, noting that revenue collection is directly linked to understanding the GDP. His frustration grew as the officials remained silent.

The absence of Finance Secretary George Guvamatanga, who was away on state business, further compounded the situation. His presence might have provided some of the missing answers.

Mbizo MP Corban Madzivanyika voiced his concerns, stating that the Ministry’s inability to provide key statistics such as GDP hindered meaningful discussions. He highlighted that without this data, it is difficult to assess whether Zimbabwe’s financial trajectory is sustainable.

Dzivaresekwa MP Edwin Mushoriwa echoed similar sentiments, describing the Ministry’s lack of preparedness as setting “a very bad precedent.” He added that the national budget should not be discussed without basic economic indicators like GDP.

The committee members were united in their disappointment, noting that such oversights complicate the process of analyzing the budget, especially when key figures are missing.

The officials were urged to ensure they have all necessary information before presenting to Parliament. The committee emphasized the need for answers in US dollars, as Zimbabwe operates in a highly dollarized economy.

In response, Zata initially appeared to struggle with the request, but later provided some figures. He mentioned that Zimbabwe’s GDP for 2024 was projected at ZiG 96.9 trillion, with the previous year’s figure standing at ZiG 133 trillion.

However, the committee remained unimpressed, questioning whether these figures added value without being converted into US dollars. With Zimbabwe’s economy reportedly 85% dollarized, lawmakers insisted that clearer, more relevant data was needed.

Zata acknowledged the shortcomings, asking for additional time to correct and refine the figures. The committee ultimately directed the Finance Ministry and its parastatals to return with the necessary information next Thursday.

This session highlighted ongoing concerns about the Ministry’s transparency and efficiency, particularly in managing and presenting critical economic data.

The exchange between the committee and Ministry officials underscores the challenges facing Zimbabwe’s financial planning. Accurate, transparent figures are essential for informed decision-making, yet these seem to be lacking.

The committee’s push for detailed and accurate economic figures signals a call for greater accountability within Zimbabwe’s financial structures. Their insistence on answers in US dollars reflects the reality of Zimbabwe’s dollarized market.

The Zim Bulletin