Value for money policy pays off as the government cuts spending by over 30%
LIVINGSTONE MARUFU
The value for money policy has allowed the government to cut spending by over 30%, the Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube said yesterday.
In an effort to re-establish price stability and market discipline, government implemented the value for money policy in August 2022.
This action has guaranteed that the nation receives fair value for its money in all public procurement transactions, since some dishonest suppliers and contractors have been known to charge outrageous prices, manipulate foreign exchange rates, and prolong price volatility.
Speaking at the 2024 Pre-Budget Seminar at the new Parliament building in Mount Hampden, Ncube said: “Since August 2022, government is making substantial savings, approximately 30%, through implementation of value for money on procurement of public goods and services.This is being achieved through the review of the procurement processes, including requirement to exercise due diligence to avoid paying for overpriced products,” Ncube said.
It coincides with the government’s ongoing efforts to improve the Public Procurement Act and related rules, such as the implementation of an electronic procurement system.
“Already, the government has set standardisation of prices of goods supplied to all government departments,” Ncube said.
Ncube stated that in order to ensure a stable macroeconomic environment—which is essential for long-term, sustainable economic growth and development—the Treasury and the Reserve Bank of Zimbabwe will continue to maintain strict fiscal and monetary policies, controlling liquidity and the money supply.
