THE budget process is the most important part of managing public finances in Zimbabwe, as it is in many other countries.
It decides how resources are distributed among different sectors, which affects everything from healthcare and education to infrastructure and social welfare programmes.
Government officials and policymakers often take the lead in budget talks, but it is important to include people that work in the informal economy, who represent the majority of workers in Zimbabwe.
The thrust of this article is to give readers a better understanding of Zimbabwe’s budget process and stress how important it is to include people from the informal economy in the management of public finances.
Budget process in Zimbabwe
Zimbabwe’s budget-making process is a cyclical, multi-stage framework involving formulation, execution and accountability, led primarily by the Ministry of Finance, Economic Development and Investment Promotion.
It begins with the development of a budget strategy paper, informed by national policies such as the National Development Strategy.
This is followed by public consultations to gather input from citizens, labour groups and the private sector, ensuring inclusivity.
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The draft budget is then presented to Parliament for debate and approval, after which it is enacted into law, authorising government spending. Once approved, the budget enters the execution phase, where ministries and departments implement allocations. However, challenges such as overspending and mismanagement have prompted tighter expenditure controls.
Oversight is provided by the Parliamentary Budget Office, which monitors spending and reviews quarterly performance reports.
Civil society organisations, including Vendors Initiative for Social and Economic Transformation (VISET), play a key role in promoting public scrutiny and encouraging community participation, especially informal economy workers, to enhance transparency and equitable resource distribution.
Currently, most local authorities have commenced public consultations and it is important to ensure that communities participate during this vital stage of the budget-making process.
Representation of interests
One of the main reasons why people, who work in the informal economy take part in the budgeting process is to make sure their interests are heard.
They often depend on government services such as health care, education and infrastructure, which are paid for by taxes. By taking part, they can push for funding that meets their needs.
For instance, street vendors can get more resources to improve their working conditions by pointing out the need for designated trading areas to cut down on harassment and make things safer. People who work in the informal economy have problems that current public policies may not be able to solve. For example, a lot of them cannot get health care or social protection.
When informal workers take part in budget consultations, they can bring these problems to light and put pressure on central government and local authorities to spend money on programmes that help them.
Setting up community health programmes or subsidised insurance plans just for people who work in the informal sector are two examples of this.
Building trust and responsibility
By taking part in the budget process, people who work in the informal economy can hold the government accountable for how it spends money.
Participation promotes transparency, enabling workers to oversee resource allocation and assess their effective utilisation. Being careful can help fight corruption and bad management, which will make managing public money better.
For instance, community groups made up of casual workers can ask for regular reports on how much money is being spent on social services that directly affect them.
Including people from the informal economy in budget talks helps bring people together and give them power. It makes people feel like they belong and that they care about public resources.
People are more likely to do good things for their communities when they feel like their voices are being heard. Grassroots movements have shown that workers can come together and work together to make their social networks stronger when they negotiate budget issues.
Impact of informal economy
Several successful initiatives illustrate the significant impact of informal economy participation in public finance management in Zimbabwe and comparable contexts. One effective strategy involves organising community meetings and forums, which provide a platform for informal economy workers to voice their concerns and suggestions regarding budget allocations.
These gatherings are crucial for fostering constructive dialogue between decision-makers and stakeholders, thereby leading to more tailored public policies that better address the needs of the community.
In an environment where informal workers often feel marginalised, these forums serve as a vital space for empowerment, enabling participants to share their experiences and advocate for fair representation in public spending decisions.
When workers unite to express their perspectives, they can collectively influence the direction of funding and resources, ultimately promoting a more inclusive and responsive approach to governance that acknowledges the contributions of the informal sector.
Partnerships with non-governmental organisations (NGOs) can significantly enhance the participation of informal economy workers in budget processes by acting as intermediaries.
NGOs play a crucial role in amplifying the voices of these workers, often organising workshops and training sessions that equip them with the necessary tools to engage meaningfully in discussions surrounding public finances.
These initiatives not only foster understanding of complex budgetary discussions but also help informal workers gain confidence in navigating public financial documents.
Furthermore, NGOs can facilitate strategic advocacy, connecting informal economy workers with policymakers and providing resources that outline their rights and potential areas for intervention.
By nurturing these relationships, NGOs help create a supportive network that empowers informal workers and amplifies their influence in policy development, ensuring that their unique needs and perspectives are duly considered in the decision-making process.
The use of technology presents an increasingly promising avenue for improving engagement among informal economy workers in public finance management.
With the rise of digital platforms, these workers can leverage social media and messaging apps to gather collective input on budget issues and communicate effectively with policymakers, transcending geographical barriers and making it easier for their voices to be heard.
This real-time feedback mechanism ensures that their needs are comprehensively represented in public finance discussions, fostering a sense of community and solidarity.
Moreover, as access to technology increases, informal economy workers can efficiently mobilise resources and advocate for their interests, creating an online presence that speaks to their collective power. Coupled with this, civic education programmes can enhance the understanding of these workers regarding the budget process, empowering them to engage in debates and consultations with knowledge and confidence.
By demystifying financial processes and equipping informal economy workers with essential skills, these educational initiatives promote active citizenship and enable them to hold government accountable.
Through these multifaceted strategies, informal economy workers are increasingly becoming vital participants in shaping policies that affect their livelihoods, ensuring a more equitable and inclusive public finance landscape.
Conclusion
The budget process in Zimbabwe is not just a way for the government to make decisions; it is a very important tool that affects the country's economy and society.
Most of the people who work in the informal economy have unique needs and ideas that should be part of budget talks. Their involvement is not just about representation; it is also a way for the government to make policies that are fair and take into account the everyday lives of millions of Zimbabweans.
Zimbabwe can use the informal economy to its full potential by encouraging people to get involved, supporting civic initiatives, and forming partnerships.
This will lead to more sustainable economic growth and social justice. The way forward requires a promise to be open to everyone, making sure that everyone has a say in the conversations that will shape the country’s future.
- Wadzai is an informal economy expert and currently the executive director for the Vendors Initiative for Social and Economic Transformation (VISET). He holds a Master’s Degree in Human Resources Development, Feedback: Email address: [email protected]. These weekly articles are coordinated by Lovemore Kadenge, an independent consultant, managing consultant of Zawale Consultants (Pvt) Limited, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountancy Institute in Zimbabwe. — [email protected] or mobile: +263 772 382 852.
