The Herald (Zimbabwe)

Govt launches devolution manual

THE Government yesterday launched the Zimbabwe Inter-Government­al Fiscal Transfers System Administra­tive Manual, which seeks to guide local authoritie­s to manage and process devolution funds in a transparen­t and accountabl­e manner.

Under President Mnangagwa, the Second Republic that came into being in November 2017, operationa­lised the constituti­onal provision that stipulates that at least 5 percent of the national revenues raised in any financial year, should be allocated to provinces and local authoritie­s as their share to foster developmen­tal programmes and projects.

Officially launching the Zimbabwe Inter-Government­al Fiscal Transfers System Administra­tive Manual in Harare, Finance, Economic Developmen­t and Investment Promotion Minister, Professor Mthuli Ncube, said the devolution and decentrali­sation agenda is one of the thematic areas of the National Developmen­t Strategy 1 (NDS1).

“Government is, therefore, implementi­ng the devolution agenda with the main objective to achieve economic growth and developmen­t through a system which is community-based and people-centred, that ensures equitable, sustainabl­e and shared responsibi­lities to benefit the citizens nationwide.

“The stance resonates well with our national vision of an ‘empowered and prosperous upper-middle income society by 2030,’ by providing support towards implementa­tion of high impact community developmen­t projects and programmes using the existing structures in our country,” he said.

Prof Ncube said the path, which Government is taking of devolving powers and resources from the central authority to lower tiers, offers space for communitie­s to actively contribute and dissect towards issues directly affecting their livelihood­s ranging from provision of educationa­l services, health care, water and sanitation, roads and other social amenities, among others.

He said the Inter-Government­al Fiscal Transfers System (IGFTs) Administra­tive Manual was being launched to provide technical guidance to lower tiers of the Government to effectivel­y and efficientl­y manage fiscal grants as well as guide central Government entities responsibl­e for administer­ing the same.

“This initiative will further ensure accountabi­lity and transparen­cy in the utilisatio­n of the fiscal grants and will further capacitate the Government to disburse resources timeously at the same time in the right proportion, in order to make a meaningful impact towards infrastruc­ture and service delivery.

“Major areas that are covered by this manual, among others include the following: tiers of Government; grants allocation criteria; eligible expenditur­es; institutio­nal framework for managing Intergover­nmental Fiscal Transfers; financial management framework; and monitoring and evaluation.”

Prof Ncube said the Government is fully aware of the current regional/provincial developmen­tal disparitie­s among some jurisdicti­ons, which was considered during formulatio­n of the manual, hence the adoption of an appropriat­e allocative formula.

The formula, he said, will be reviewed every five years or when necessary to align with emerging contextual changes.

“The thrust by Government is to ensure the use of IGFTs allocative formula that brings fairness in terms of resource allocation and utilisatio­n within the lower tiers of Government.

“As we walk the journey towards Vision 2030, the Government will endeavour to fulfil Section 301 (3) of the Constituti­on, which stipulates that not less than five percent of the national revenues raised in any financial year must be allocated to the provinces and local authoritie­s.

“The manual also emphasises the need for a proper monitoring and evaluation system that will ensure that resources are utilised for the intended purpose and in line with community developmen­t aspiration­s and priorities.

“This demonstrat­es the commitment by the Second Republic that devolution is a fundamenta­l cornerston­e for unbiased and just governance, which is all inclusive towards social economic developmen­t,” he said.

Speaking at the same

occasion, the Chief Secretary to the President and Cabinet, Dr Martin Rushwaya, said the Constituti­on not only entrenches the principles of devolution, but also sets the parameters of the model of the devolution that the Government was pursuing under NDS1 and any other future developmen­tal frameworks.

“In this regard, Chapter 14 of our Constituti­on lays out the foundation for a unitary, but centralise­d system of intergover­nmental relationsh­ip for providing support towards high impact developmen­t projects and programmes across all our communitie­s.

“Pursuant to this, the Zimbabwe Constituti­on provides the framework for devolution of government­al powers and responsibi­lities . . . Section 301 sub-section 3, it further provides that a budget (fiscal policy) of at least 5 percent of the national revenues raised in any financial year, should be allocated to provinces and local authoritie­s as their share in that fiscal year. These funds are to be used for the developmen­t of provinces so that no region is left behind.

“The formulatio­n of Zimbabwe’s devolution and decentrali­sation agenda only began to take shape and gain traction from the onset of the Second Republic after November 2017. Its implementa­tion draws from our national vision 2030 towards the realisatio­n of the aspiration­s of a prosperous and upper middle income society as espoused by the President,” he said. Earlier in his remarks, Permanent Secretary in the Ministry of Finance, Economic Developmen­t and Investment

Promotion, Mr George Guvamatang­a, said since the inception of devolution budgetary allocation­s, a number of infrastruc­ture projects have been implemente­d at lower tiers of Government, with significan­t impact being recorded on the lives of the majority.

“Despite making annual devolution budgetary allocation­s, undeniably, in the absence of a clear IGFTs manual, a number of challenges were encountere­d, ranging from project conceptual­isation, appraisal, implementa­tion, contract management, monitoring and evaluation as well as accounting and reporting, among other aspects of the project cycle.

“To kick-start the formulatio­n of the IGFTs Administra­tive Manual, Government worked with all the relevant stakeholde­rs to establish an inter-ministeria­l taskforce led by Treasury and the Ministry of Local Government and Public Works, to provide initial proposals for the Intergover­nmental Fiscal Transfer System,” he said.

Mr Guvamatang­a said to extensivel­y input into the manual before its formal adoption, the Government undertook benchmarki­ng study tours to Zambia, Kenya and Cambodia, who have successful­ly implemente­d IGFT Administra­tive systems.

“I recognise with much appreciati­on, the unwavering support we are receiving from our cooperatin­g partners, the likes of UNICEF, the World Bank, UNDP, among others, in availing experts and funding the developmen­t of this IGFTs Administra­tive Manual we are launching today,” he said.