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ACCN302 Powerpoint Assignment

The document outlines the sources of public revenue for central and local governments in Zimbabwe, including taxation, royalties, borrowing, grants, intergovernmental transfers, user fees, and licensing. It also details key areas of public expenditure such as health, defense, education, infrastructure development, service delivery, and administration. The information highlights the government's financial strategies and priorities in managing public funds.

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Professor C Mapungwana
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4 views16 pages

ACCN302 Powerpoint Assignment

The document outlines the sources of public revenue for central and local governments in Zimbabwe, including taxation, royalties, borrowing, grants, intergovernmental transfers, user fees, and licensing. It also details key areas of public expenditure such as health, defense, education, infrastructure development, service delivery, and administration. The information highlights the government's financial strategies and priorities in managing public funds.

Uploaded by

Professor C Mapungwana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ACCN302

Group 2 Assignment
Identify and explain the sources of
public revenue for central and local
government in Zimbabwe
Taxation
• Taxation is a vital source of revenue and the ZIMRA in
Zimbabwe is responsible for collecting taxes of behalf of
the government.
• The type of taxes include Income tax (levied on individuals
and companies), Value-Added tax (consumption tax levied
on goods and services), Customs duties (levied on
imported goods) as well as Execise duties (levied on
specific goods)
Royalties
• These are payments made to the government by
companies or individuals for using state-owned resources
or properties, such as minerals, oil, gas and forests.
• Examples of royalties include mining royalties and
intellectual property royalties and they ensure the
government is compensated for the use of national assets.
Borrowing
• The government can also raise funds through borrowing
both locally and internationally.
• Domestic borrowing through the issuing of government
bonds to raise funds from local financial institutions as
well as foreign loans from institutions like World Bank and
Bilateral lenders
Grants
• Grants are a critical funding source for Zimbabwe,
providing non-repayable financial support from foreign
governments and international organisations.
• They fill budget gaps and finance key sectors (health,
education, infrastructure)
• As well as supporting development projects when
domestic revenue is insufficient.
Intergovernmental Transfers
• The central government may provide grants or transfers
to support struggling local authorities, although these are
often insufficient and irregular.
• Although irregular, the central government gives
conditional grants.
• Example: In 2021, devolution funds were disbursed to
rural councils such as Mutoko RDC to build clinics and
roads.
User fees and service charges
• Payments for services such as:
• Water supply
• Sewerage
• Waste collection-Fees are imposed for waste management.
• Parking fees -Motorists pay certain fees in accordance
with time to park their cars. City marshals are in charge
of ensuring those payments
Licensing and Permits
Fines and Penalties
• Fees for business licenses, health permits, and operating
approvals.
• Examples include shop licenses, liquor licenses, and
hawker permits
• Revenue is from by-law violations such as :
• (i) Illegal vending
• (i) Littering/vandalism
Identify and explain the key
areas of public expenditure for
central and local government
Health
• Health spending is a key priority in Zimbabwe’s national
budget, supporting public healthcare, disease prevention,
and infrastructure development. The government has
made significant progress, including, HIV/AIDS program,
maternal & child health, hospital upgrades (major
improvements at Parirenyatwa and Harare hospitals,
including emergency units and modern equipment.
• Local government support public health through local
clinics and health posts, community health outreach and
sanitation and hygiene programs.
Defense and National Security
• The Zimbabwean government prioritizes national security,
allocating funds to defense, policing, and correctional services to
ensure stability and safety.
• Defense (ZDF)– Supports military operations, salaries, and
equipment. Zimbabwe also contributes troops to regional
peacekeeping missions (SADC/AU).
• Policing (ZRP)– Funds crime prevention, traffic control.
• Prisons (ZPCS)– Manages facilities, rehabilitation, and inmate
welfare.
Education
• The Zimbabwean government prioritizes education in its
national budget. In 2025 education received ZWLL$56.96
billion, making up 20% of the total budget, which is
distributed across primary, secondary and tertiary
education sectors.
• This includes salaries for teachers, supply of textbooks,
educational support programs, scholarship programs, etc.
Infrastructure Development and
Maintenance
• Another major expenditure that can be initiated by central
government is of infrastructure development. Zimbabwe is
investing heavily in infrastructure in 2025, with 527 projects
across energy, transport, water, housing, health, and education.
• Local authorities manage transportation infrastructure within
their jurisdictions, including, road repairs (pothole patching,
regrading, and resurfacing of urban and rural roads) and storm
drainage systems (construction and maintenance of drainage to
prevent flooding).
Service Delivery
• Local governments in Zimbabwe are responsible for
providing essential services to residents, including:
• Water Supply– Ensuring access to clean and safe drinking
water through boreholes, water treatment plants, and
distribution networks.
• Refuse Collection– Regular garbage collection, landfill
management, and enforcement of waste disposal
regulations
Adminstration and Governance
• A significant portion of expenditure goes towards
governance, including:
• Salaries and Benefits– Paying council workers, including
administrators, engineers, and health workers

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