Govt to reallocate more funds for drought relief

Harare, (New Ziana)- The government is going to reallocate funds from other budgetary items towards supporting grain imports to lessen the effects of drought which had been underestimated, a Cabinet Minister said on Monday.

President Emmerson Mnangagwa recently declared a national disaster to tackle the prolonged drought crisis.

The drought has wiped away half the maize crop leaving the government requiring US$2 billion to tackle hunger.

Appearing before the joint parliamentary portfolio committees on Budget and Finance and Industry and Commerce, Finance Minister Prof Mthuli Ncube said the impact of the drought is more severe than had been predicted hence the need for more resources.

“Government is going to reallocate resources from other budget priorities to support grain imports in addition to borrowings,” he said.

Prof Ncube said government had fortunately insured the crops against drought though the payout would not be adequate to import grain into the country.

“We insured the crops. So we will get a payout soon. It’s on the way. It should be a decent amount which will be used to support our budget.

“To import grain we need seven times the insurance payout. Going forward we need to broaden the insurance and also insure Pfumvunza crop to reduce the fiscal impact of any drought relief,” he said.

He however said the reallocation of funds to drought relief would not increase the budget deficit.

“The drought will not have significant impact on ZiG stability. This is a budget deficit neutral reallocation. I don’t think a supplementary budget will be necessary,” he told the MPs.

New Ziana