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PUBLIC FINANCE MANAGEMENT AMENDMENT H.B. 24, 2021
PUBLIC FINANCE MANAGEMENT AMENDMENT BILL, 2021
The purpose of this Bill is to amend the Public Finance Management Act [Chapter
22:19] so as to align it with the provisions of the Constitution of Zimbabwe, inter alia,
in the following respects:
This clause cites the title to the Bill as the Public Finance Management Amendment
New definitions of “assets”, “grant”, “liabilities”, “public property”, “Treasury
memorandum” and “virement” will be inserted in the principal Act by this clause. The
definition of Auditor-General will be amended so as to refer to the current name of the
office under the Constitution of Zimbabwe and to cross-refer to the correct section in
the Constitution. The definition of “financial statements” will be replaced by a wider
This clause will provide for a new provision on the objects of the principal Act.
Clause 4 will amend section 4(1) of the principal Act so as to provide for provincial
and metropolitan councils and local authorities.
A new Part IIA will be inserted in the principal Act which will provide for
Parliamentary oversight of State revenues and expenditure. A new clause 5A will
provide for Parliament to monitor and oversee public finances, while the new clause
5B will state the responsibilities of a Parliamentary Committee on budgets and a new
clause 5C will provide for the responsibilities of the Public Accounts Committee.
This clause will insert a new subsection (3a) in section 6 of the principal Act which
will require the written instructions issued by the Accounting Officer to be approved
by Treasury and to be submitted to the Auditor-General.
Clause 7 will repeal paragraph (b) of section 7(1) of the principal Act and will
substitute new paragraphs (b) and (c). The new paragraph (b) will state the Minister
of Finance’s duty as advising the government on the allocation of public resources
between ministries, public entities, etc., while the new paragraph (c) will require the
Minister to provide guidance on measures to be adopted by Government to ensure the
balanced allocation of resources.
A new section 10A will be inserted in the principal Act which will provide for
the office of a Director responsible for finance in each Ministry.
This clause will replace section 12(8) so as to provide for appeals to be lodged
with the appropriate Minister and for appeals to be submitted to the Auditor-General
Clause 10 will insert new sections 12A, 12B and 12C into the principal Act. The
new section 12A sets out the duties of custodians of public funds and public property.
The management of State assets is provided for in the new section 12B. The new
section 12C will provide for Treasury to impose a surcharge on any person who has
the responsibility of collecting moneys where such moneys are found to be deficient,
or where there is a loss of public moneys, etc.
Section 16 of the principal Act will be repealed and substituted by this clause.
The new clause will require all revenues to be paid into the Exchequer Account.
This clause will repeal and replace section 17 of the principal Act and will provide
for the control of expenditure from the Consolidated Revenue Fund.
Clause 13 will insert new sections 17A and 17B into the principal Act. The new
section 17Awillrequire costs and expensesto be direct charges againsttheConsolidated
Revenue Fund. Grants of credit will be charged against the Consolidated Revenue
Fund in terms of the new section 17B.
Clause 14 will make provision for the appointment of management committees
by an accounting officer under the new section 18(12).
This clause will amend section 19 of the principal Act by deleting the reference
to “House of Assembly” and substituting it with “National Assembly” in accordance
with the Constitution and by substituting the correct cross-reference to the particular
section of the Constitution.
Section 22 of the principalAct will be repealed by this clause and replaced with a
provision which provides for Treasury to establish banking accounts with the Reserve
Bank or an authorised financial institution.
This clause will amend section 24 of the principal Act so as to provide for issues
authorised to be included in additional or supplementary estimates of expenditure.
Clause 18 will substitute section 27(1), which will provide for the President to
authorise the issueofmoneyfromtheConsolidatedRevenueFund,duringthedissolution
of Parliament, so as to carry on the services of Government.
A new section 27A will be inserted into the principal Act by this clause. The new
section 27A will provide for the preparation of estimates of revenue and expenditure.
This clause will amend section 28(2) and (3) by deleting “House of Assembly”
and substituting “National Assembly” so as to correctly refer to the chambers as cited
in the Constitution. Section 28(4) as amended will require the Minister of Finance to
submit separate estimates of revenue and expenditure for each Commission, the office
of the Auditor-General, etc.
Clause 21 will insert new sections 28A, 28B and 28C. The new section 28A will
make provision for the management of budgets and the new section 28B will provide
for the management of cash. Additional and supplementary estimates will be provided
for in the new section 28C.
A new section 29A, which provides for Virementing, will be provided for by this
Section 31(1) of the principal Act will be substituted in terms of this clause and
will provide for the expiry of provisions which have been made in an Appropriation
Act and which have not been expended in the particular financial year, at the end of
that financial year.
This clause will insert a new section 31A in Part IV of the principal Act which
will provide for the details relating to financial reporting.
Clause 25 will substitute section 32(1) which will require directors responsible
for finance to prepare or cause to be prepared, the annual financial statements of the
particular Ministry and to submit the statements to the accounting officer.
Clause 26 will repeal and replace section 35 of the principalAct. The new section
35 will require accounting officers to keep proper records of accounts, and to submit
statements to the Auditor-General and Accountant-General within 30 days after the
end of the financial year. TheAccountant-General will be required to prepare financial
statements on the Consolidated Revenue Fund and to submit the statements to the
Under this clause a new section 36A will be inserted into the principal Act. This
new provision will require the accounting officer of a constitutional entity or public
entity to submit annual reports and financial statements to the National Assembly, the
Minister of Finance, the appropriate Minister, theAccountant-General and theAuditorGeneral.
Public Finance Management Amendment.