President Mnangagwa has signed into law the Appropriation and Finance Acts, marking the official start of Zimbabwe’s ZiG276.4 billion 2025 National Budget.
Presented by Finance Minister Professor Mthuli Ncube in November 2024, the budget outlines priorities designed to foster economic resilience, address societal needs, and maintain fiscal discipline. With ZiG234.7 billion in revenue and an additional ZiG6.2 billion in retention funds, the budget reflects the Government’s commitment to balancing growth and stability.
The Ministry of Primary and Secondary Education received the highest allocation of ZiG46.7 billion, reaffirming the Government’s focus on Education.
The health sector followed closely with ZiG28.8 billion, while ZiG22.9 billion was earmarked for agriculture to support irrigation and dam construction, mitigating climate shocks and promoting food security. Gender equity and youth welfare were also prioritized, with ZiG211 million set aside for sanitary wear in public schools and capital injections for the Women’s Bank and Empowerbank. Infrastructure development received ZiG5.4 billion, ensuring that critical transport projects remain on track.
On the revenue side, the Finance Act introduced changes to taxation aimed at broadening the tax base. Tax bands for incomes were adjusted to align with current exchange rates, and new taxes were imposed on the informal sector, sports betting, and fast foods. A 10% levy on betting winnings, a 0.5% surcharge on less healthy fast foods, and a 20% surcharge on non-renewable plastic bags demonstrate a clear shift toward inclusive and environmentally conscious revenue collection.
These measures are expected to generate additional income while addressing health and environmental concerns.
The budget also underscores fiscal discipline, with the deficit capped at 0.4% of GDP. This approach is critical for maintaining economic stability amid currency and other macroeconomic challenges. The emphasis on resilience was evident during parliamentary debates, where legislators across party lines sought clarity on how the budget would support diverse groups, including women entrepreneurs, rural farmers, and the youth.
Minister Ncube highlighted initiatives such as irrigation projects, rural infrastructure, and targeted financial support as key drivers of resilience against shocks.
While the budget presents a comprehensive plan for inclusive growth, its success hinges on effective implementation and robust administration. The inclusion of the informal sector in the tax net and the focus on sustainability reflect a forward-looking strategy.
However, balancing ambitious targets with practical execution will require close coordination among stakeholders.
As the Government moves forward, the 2025 National Budget offers a roadmap for transforming Zimbabwe’s economic landscape through strategic investments and disciplined governance.
