A Critical Analysis of the Impact of Remittances on Public Finance in Zimbabwe:

Abstract

This study examines the impact of remittances on public finance in Binga, Zimbabwe, using Tinde and Upper Dobola as case studies. The Theory of Remittances and Economic Development and the Dependency theory were used as the theoretical framework of the study. A qualitative case study research design was used. The study had a target population of 160 people. A non-probability, purposive sampling method was used to select a sample of 30 respondents. Interviews and focus group discussions were used to gather empirical data. Findings from the study reveal that remittances offer resilience in the face of economic shocks, reduce poverty and enhance public finance through supporting local development projects. The study recommends the need for capacity building of local communities, increasing the flow of remittances through formal channels, reducing transaction costs of remittances and encouraging spending in formal markets to increase tax revenue.