$6,3bn disbursed for devolution in 2021

The Government disbursed over $6,3 billion in devolution funds last year for the implementation of various projects, but the amount was short of the $19,54 billion initially budgeted for, Permanent Secretary in the Ministry of Local Government and Public Works, Mr Zvinechimwe Churu, has said.

He said this when he appeared before the Portfolio Committee on Local Government, Public Works, National Housing and Urban Development, giving an update on the ministry’s Budget performance for the third and fourth quarters of 2021.

“For the intergovernmental fiscal transfers (devolution funds) and as at 30th September, we had spent $6,38 billion and we still had $13,22 billion to spend for the remaining three months,” he said.

However, Mr Churu said no more disbursements were made for the remainder of the year.

He implored the legislature to urge the Government to release the funds as they were critical in community development.

The Constitution requires the Government to set aside 5 percent of the National Budget as devolution funds, which are then disbursed through local authorities.

Mr Churu also said subsidies paid out to Zupco had resulted in an increase in expenditure than was initially budgeted for.

“The original allocation was $3,48 billion and expenditure as at 30th September had exceeded the original (budget) slightly and was at $3,59 billion, giving a negative variance of $138,8 million and the biggest expenditure under the programme was urban transport advisory and this was due to subsidy paid out to Zupco which exceeded the original budget.

“On that particular item, the original budget was $2,1 billion and expenditure was at $3,46 billion and giving a utilisation of 163 percent of the original budget,” Mr Churu said.

He attributed the over expenditure to increases in fuel prices and other maintenance costs of the Zupco fleet.-The Herald