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Michael Magoronga, Midlands Correspondent

THE Kwekwe City Council is seriously considering introducing a programme-based budgeting system anchored on forex billing for consumers and companies to enhance funding of development projects.

Although the council has embraced dual pricing in line Statutory Instrument 185 of 2020, which allows entities to accept payments either in forex or in local currency, Kwekwe director of finance Mrs Rejoice Dandira said the local authority was struggling to implement the approved 2020 budget.

As such, she said council was moving to rebase tariff structures in US dollars, with payment being done in either US dollars or equivalent.

“From January to June revenue earned is $$174,6 million against revenue budgeted of $235,8 million leaving a variance of $61 million. This was due to cash inflow challenges as a result of low revenue inflows,” she said.

“We are, therefore, moving to introduce the Program Based Budgeting systems (PBB), to say when we have a certain programme we budget to wards that,” she said.

Mrs Dandira said loss of monetary value did not only lead to resistance by ratepayers to pay for services but also led to council struggling to pay for some unbudgeted requirements like Personal Protective Equipment as the town joins the work in the fight against Covid-19.

“Council is not generating foreign currency, which the market is demanding. As a result, accessing fuel has been a serious challenge. Most products are now quoted in US dollars or equivalent in Zimbabwe currency.

“Prices have significantly increased from January to date. We’re, therefore, moving to introduce the US dollar in some sections where it’s necessary,” she said.

Mrs Dandira said after a meeting with SME representatives, they agreed that lease agreements as well as rentals and license be charged in US dollars.

“We are, therefore, meeting with various stakeholders with the SMEs having already agreed that they be charged for their lease agreements in US dollars. Council has, therefore, introduced lease agreements for all vendors,” she said.

“This is in line with good governance practices. Accounts will be opened for vendors who have signed and has an option of paying in US or equivalent,” said Mrs Dandira.

She appealed to businesses charging their products and services in US dollars to also pay their bills in forex.

“Going forwards, council tariffs will be rebased to 2017 and be charged in US dollars payable at prevailing exchange rate on the date of payment,” said Mrs Dandira.