Government cuts spending, after ZiG lost 43% of its value

The government has cut spending for the Budget Support for November and December 2024, in response to the performance of the Zimbabwe Gold (ZiG).

This was in response to the local currency (ZWG) performance after it depreciated by 43% against the USD, creating a revenue-expenditure mismatch.

According to the ministry of finance, fiscal space for the last quarter of 2024 was constrained due to:
-Currency depreciation effects and backdated salary review in October 2024.

Key funding priorities include:
•2024 bonus award.
•Food deficit mitigation support.
•2024/25 agriculture input support.
•Utilities and other critical expenditures.

Non-wage budget support for November and December 2024 to be limited.

Ministries, Departments, and Agencies (MDAs) advised to prioritize spending commitments.

The following measures for expenditure containment have been put in place:
•Prioritize payment of outstanding unfunded obligations.
•Treasury approval required for foreign travel unless funded by non-governmental sources.
•Defer local workshops unless approved by the Treasury.
•Reduce fuel allocations for operations by 50%.
•Revised fuel allocations.