The government is seeking parliamentary approval to withdraw over P2 billion from the Consolidated Fund to cover unbudgeted spending incurred during the 2023/2024 financial year, according to a new Bill to be tabled before parliament.
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Finance Minister Ndaba Gaolathe is set to table a Supplementary Appropriation Bill in Parliament seeking approval for the use of more than P2 billion.
The Bill aims to regularise spending that exceeded the amount initially approved under the Appropriation Act of 2023, according to a memorandum accompanying the Bill.
Gaolathe explained that the bill complies with Section 119(4) of the Constitution and the Public Finance Management Act. It only provides for the formal appropriation of supplementary funds already authorised by a parliamentary resolution under Section 119(3).
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โThe Consolidated Fund is hereby charged with a further sum of P2,062,782,860 to meet expenditure incurred during the financial year which ended March 2024,โ Gaolathe stated.
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The supplementary funds will cover shortfalls across various ministries, with the Ministry of Local Government receiving the highest top-up of P426.6 million, followed closely by the Ministry of Finance, which gets P352 million. The breakdown of allocated funds includes a sum of P281.4 million to be allocated to the Ministry of Defence and Security, a sum of P135.3 million to be allocated to the Ministry of State President, while around P235 million will be allocated to the Ministry of Health.ย
Additionally, the minister indicated that the Ministry of Education will be allocated up to P228.8 million. The Ministry of Foreign Affairs will be allocated a sum of P94 million, with the Ministry of Transport and Public Works getting up to P116 million, according to Minister Gaolathe. He further added that a sum of P51 million will be allocated to the Ministry of Communications, Knowledge and Technology with the Ministry of Youth, Gender, Sport and Culture getting a sum of P38.8 million.ย
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Smaller but notable top-ups include P64.6 million for the Ministry of Minerals and Energy and P23.7 million for the Ministry of Labour and Home Affairs. Even Parliament itself received a modest supplementary allocation of P7.9 million.
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Minister Gaolathe will table the Bill for debate and adoption, paving the way for legal recognition of the excess expenditure from the last fiscal year.
Observers say the development underscores the growing pressures on government departments to deliver services amid evolving fiscal demands. The supplementary budget reflects a wide spread of additional needs across core areas such as defence, education, health, and infrastructure.
Last year in March, the then Minister of Finance, Peggy Serame told Parliament that the Ministry of Finance will tighten screws to improve budgeting processes and minimise unnecessary supplementary budgets.
At the time, Serame said the ministry would put in place appraisal systems and further introduce a system with strong checks and balances that would verify whether the money would be spent as intended. While acknowledging that supplementary estimates were sometimes a budget management issue, she said it was evident that some ministries were unable to justify their budget.ย
