MPs flag devolution funding gap as councils struggle with water, sanitation and roads

Parliamentary Watch

HARARE — Parliament has raised concern over the chronic underfunding of local authorities, revealing that Treasury disbursed less than 1% of total national revenue collections towards devolution and intergovernmental fiscal transfers during the first half of 2026.

The findings were presented in the National Assembly by the Portfolio Committee on Budget, Finance and Investment Promotion during debate on the 2026 Mid-Term Budget and Economic Review and the 2027 Budget Strategy Paper.

Lawmakers warned that the severe disbursement shortfall violates constitutional provisions and directly cripples the capacity of local authorities across the country including the Bulawayo City Council and rural district councils across Matabeleland to deliver basic water, sanitation, and road maintenance services.

Presenting the committee’s report, Hon. Dhliwayo told the House that intergovernmental fiscal transfers represented the smallest category of government expenditure despite robust state revenues.

“The inter-governmental transfers to provincial councils and local authorities were less than 1% of the total revenue collected during the first six months of 2026, representing the smallest expenditure category,” Hon. Dhliwayo said.

Hon. Dhliwayo noted that the low disbursements breach the supreme law of the country: “Whilst there is traction on disbursement of devolution funds, the disbursement falls short of the requirements of Section 301 of the Constitution, which stipulates that at least 5% of national revenue be allocated to provinces and local authorities. Low expenditure on inter-government fiscal transfers constrain the capacity of local authorities to provide water and sanitation services, waste management and other infrastructure priorities.”

The committee urged the Ministry of Finance to comply with Section 264(e) of the Constitution regarding the equitable sharing of local and national resources.Contributing to the debate, Hon. Madzivanyika challenged the arithmetic behind Treasury’s disbursements, noting that revenue collections had far outpaced the funds released to councils.

“The principle is straightforward: 5% of our total collections must be allocated to devolution. In the first half of this year, we collected ZiG137.8 billion. By simple calculation, 5% of that amounts to ZiG6.89 billion. However, we have disbursed less than one billion, which means we have allocated a mere 0.1% of what we have collected,” Hon. Madzivanyika argued.

“This situation clearly illustrates that we have failed to fulfil our constitutional obligation to allocate the mandated 5% to devolution. Despite the explicit requirements outlined in our national Constitution and under the scrutiny of Parliament, we find ourselves in a troubling position. I question the purpose of this House when our laws are being so blatantly disregarded in our presence,” he added.

Responding to the debate, Finance, Economic Development and Investment Promotion Minister Prof. Mthuli Ncube acknowledged the concerns and gave assurances that releases to local authorities would increase in the second half of the year.

“In the area of devolution, we have commented on this. I can assure him that we will improve disbursements going forward on devolution funding,” Prof. Ncube said.

Devolution funds are intended to empower provincial councils and local authorities to address grassroots infrastructure backlogs without relying exclusively on strained local rate collections.

For urban centres like Bulawayo and rural local authorities across Matabeleland North and Matabeleland South, the funding deficit directly impacts daily service delivery, stalling major capital outlays for water treatment works, sewer pipe replacements, refuse fleet procurement, clinic rehabilitation, and rural access road maintenance.

Devolution is a system of government in which decision-making powers, responsibilities and financial resources are transferred from central government to provincial councils and local authorities. Its purpose is to enable communities to participate in determining their development priorities and to allow local institutions to provide services such as water, sanitation, refuse collection, roads, clinics and markets.

In Zimbabwe, devolution is provided for under the Constitution and is intended to promote democratic participation, equitable development and the sharing of national resources. Section 301 provides that at least 5% of national revenues raised in a financial year should be allocated to provincial councils and local authorities.

The funds are therefore meant to give councils greater capacity to respond to local needs instead of relying mainly on rates, service charges and other limited local revenue sources. For residents of Bulawayo and rural districts in Matabeleland, effective devolution funding can determine whether councils are able to repair water infrastructure, maintain roads, collect refuse, rehabilitate clinics and improve public markets.

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