Gov’t Commits to Timely Disbursement of Funds and Fiscal Reform
Dr. Situmbeko Musokotwane, the Minister of Finance and National Planning, addressed the concerns raised by the Committee on Planning and Budgeting regarding the review of the third and fourth-quarter performance of the 2023 budget for selected ministries, provinces, and agencies.
The minister’s statement highlighted key measures the government intends to take to address issues and improve fiscal management.
Dr. Musokotwane expressed gratitude to the committee for producing a detailed report, emphasizing its importance in providing feedback on macro-fiscal performance to enhance budget credibility and service delivery.
He acknowledged concerns about delayed disbursement of funds to government institutions and assured the House of ongoing efforts to improve resource mobilization for timely fund allocation.
One notable initiative mentioned by the minister is the implementation of an electronic invoicing system and digitization of government systems to ensure funds are available in line with budgetary provisions.
Additionally, he assured timely disbursement of funds to Credit Guarantee Schemes, aiming to stimulate growth in the domestic economy by facilitating affordable financing for micro, small, and medium-sized enterprises.
Regarding fiscal reform, Dr. Musokotwane addressed the committee’s recommendation to reduce non-discretionary expenditure and create more fiscal space for developmental spending.
He highlighted the government’s commitment to debt restructuring to achieve this objective, ensuring that funds are directed towards developmental projects aligned with national priorities.
Furthermore, the minister assured the House of the government’s commitment to advancing science, technology, and innovation to propel the nation into the fourth industrial age.
He encouraged the Ministry of Science and Technology to engage with the Treasury to enhance digital transformation, fostering innovation and entrepreneurship.
In response to the committee’s recommendation for transparent reporting on tax expenditures and compliance monitoring, Dr. Musokotwane announced the government’s initiative to generate the first-ever tax expenditure report. This move, aligned with IMF agreements, aims to enhance transparency and fiscal responsibility, providing insights into the effectiveness of tax measures.
Addressing concerns about consistent management of fiscal and monetary policy, the minister assured the House of government efforts to maintain a stable macro-fiscal environment.
He emphasized the coordination between fiscal and monetary policies to ensure stability in variables such as inflation and exchange rates, ultimately improving the quality of life for citizens.
