Zimbabwe’s Finance Minister Urges Fiscal Discipline in Mid-Term Budget Review

Zimbabwe’s Finance Minister Urges Fiscal Discipline in Mid-Term Budget Revie

“We all understand the pain and cost of instability, and we cannot afford any policy slippages.” — Finance Minister Mthuli Ncube

In his 2025 Mid-Term Budget Review, Finance Minister Mthuli Ncube emphasized the importance of maintaining fiscal discipline, opting against any major new policy shifts. Addressing Parliament today, Ncube said the government must “stay the course” to safeguard economic stability and ensure efficient use of public resources.

📊 Budget Performance: First Half of 2025

• Under-Expenditure: Only 35% of the approved 2025 national budget was utilized between January and June, largely due to sluggish revenue collection in the first quarter.

• No Additional Allocations: Ncube ruled out supplementary budget provisions, stating: “The remaining 65% is enough.”

🚧 Sectoral Spending Highlights

• Transport: The Transport Ministry has already overspent its full-year allocation, reaching 116% of its budget. This was driven by major road infrastructure projects, including the Trabablas Interchange.

• Health: The Health Ministry spent just 25% of its budget, reflecting delays in Treasury disbursements.

• Wage Bill: Salaries continue to dominate government finances, accounting for approximately 50% of both expenditure and revenue.

🍬 Sugar Tax Revenue & Health Investment

The government collected US$25.4 million from the sugar tax on beverages between January and May. These funds are earmarked for cancer treatment equipment.

“The responsible Ministry has already initiated the necessary procurement processes… with the target to receive delivery before end of the year,” Ncube confirmed.

💰 Foreign Currency Earnings Surge

Zimbabwe earned US$6 billion in foreign currency in the first half of 2025 — a 30.2% increase from US$4.9 billion in 2024. The growth was driven by a sharp rise in gold exports, which nearly doubled to US$1.4 billion, buoyed by stronger global prices.

📦 Imports & Tax Revenue

• Imports rose by 5.2%, reaching US$4.03 billion, up from US$3.83 billion in the same period last year.

• Tax Revenue totaled US$3.68 billion, exceeding the government’s target of US$3.28 billion. Notably, 96% of this revenue came from taxes.