TREASURY has accused government ministries of sabotaging development by signing contracts outside the national budget, a practice it says is choking payments for roads, clinics and schools.
Peter Makore, an economist in the Finance, Economic and Investment Development ministry’s Department of Infrastructure Development, told Karoi business leaders and farmers this week that “off-books” deals were creating a cashflow crisis from local to national level.
“We are facing challenges of how some ministries are signing contracts outside ministry revenue base. It becomes hard to make payments on time,” Makore said at a Zimbabwe Revenue Authority (Zimra) tax education workshop held in the farming town of Karoi in Hurungwe district.
Makore confirmed that Treasury had allocated funds for the Karoi-Binga Highway, a new Zimbabwe Republic Police station at Tengwe and the upgrading of Hurungwe Prison in Kariba, among others. But the assurances drew immediate fire from the floor.
Karoi businessman Erati Jackson dismissed the presentation as “book economics” with no visible impact on the ground.
“With all due respect, what you are saying is only book presentation as we are yet to see anything here,” Jackson said.
“If the budget allocation was for this year, it is halfway into the year, how feasible that these will be implemented? We are being misdirected.”
Another participant said urgent funds were needed for the health sector, where most hospitals lack essential drugs and force residents to cross into Zambia for medication.
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While Zimra hunts tax defaulters, State departments are inflating the payment queue by committing funds Treasury never budgeted for.
The result: stalled projects and frustrated contractors.
“We urge all government departments to understand how finances work, not haphazardly,” Makore, the economist from the ministry, said.
“Figures don’t lie, so we aim to improve all payments for development.”
A Zimra official, Claitus Munhande, told citizens “civil servants’ salaries are determined by low taxes that we contribute”.
Makore said the Infrastructure Cluster will now tighten contract approvals and enforce alignment to the revenue base under National Development Strategy 2.
“Compliance must start in government, not just at the market,” he said.
