Public Finance Management Act

The Public Finance Management Act (PFMA) is the cornerstone of public financial governance in Zimbabwe. The Act establishes the legal framework for the preparation, approval, execution, and oversight of the national budget, as well as the management of public revenues, expenditures, assets, and liabilities. It applies to all government entities, including local authorities, though certain provisions are specifically adapted for the local government context.

Key provisions include:

• Budget process – Prescribes a predictable, transparent timeline for budget preparation, cabinet approval, parliamentary (or council) consideration, and public dissemination. Requires that budgets be presented in a classified format showing revenues, expenditures, and development allocations.

• Revenue management – Mandates that all public revenues be deposited into designated funds (e.g., the Consolidated Revenue Fund) and imposes strict controls on the use of public moneys. Regulates the imposition, collection, and accounting of taxes, fees, and levies.

• Expenditure controls – Requires that no expenditure be incurred without prior appropriation by the legislature (or council). Prohibits over-expenditure of budget allocations and requires virement (transfers between votes) to be approved according to prescribed limits.

• Public debt management – Provides rules for contracting loans, issuing guarantees, and managing the national and local government debt portfolios to ensure sustainability and protect public creditworthiness.

• Financial reporting – Requires the Accountant-General and responsible officers (including local authority finance directors) to maintain proper accounts, prepare periodic financial statements, and undergo external audit by the Auditor-General. Specifies the form, content, and timeliness of financial reports.

• Internal controls – Mandates the establishment of internal audit functions, risk management systems, and procurement compliance mechanisms within each public entity.

• Accountability and sanctions – Holds accounting officers personally accountable for financial mismanagement, unlawful expenditure, and breach of fiduciary duties. Prescribes disciplinary, civil, and criminal sanctions for violations.

For your local authority, the PFMA determines how your council budget must be prepared, how funds can be spent, what financial records must be kept, and the accountability your finance team and councillors face for mismanagement.

• PUBLIC_FINANCE_MANAGEMENT_ACT_22_19 pdf (242kb) [ download ]