President Mnangagwa Enacts Laws To Operationalise 2025 National Budget

President Emmerson Mnangagwa has signed into law the Appropriation Act and the Finance Act, effectively operationalising the ZW$276.4 billion 2025 National Budget.

The budget was presented by Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, on November 28 last year.

The two Acts, published in an Extraordinary Government Gazette on Monday, authorize government spending and taxation changes as outlined in the budget.

This enables the government to allocate funds approved by Parliament and implement revised tax rates, including broadening the tax base to cover sections of the informal sector. The budget anticipates ZW$234.7 billion in revenues from the Consolidated Revenue Fund, complemented by ZW$6.25 billion in retention funds earmarked for specific purposes under the Public Finance Management Act.

Parliament approved the budget last month following intense debates spanning five days. Legislators sought clarity on how the budget supports economic resilience and inclusive growth.

Addressing these concerns, Prof. Ncube highlighted investment in dam construction to enhance irrigation and boost agricultural productivity as a key strategy to build resilience against climate change and food insecurity.

The budget also prioritizes women’s empowerment, with funding for the Empowerbank and Women’s Bank, and allocates ZW$211 million for the provision of sanitary wear to schoolgirls. Fiscal discipline remains central, with the budget deficit projected to stay below 1% of GDP.

The Ministry of Primary and Secondary Education received the largest allocation of ZW$46.7 billion, followed by Health and Child Care with ZW$28.8 billion. Other notable allocations include ZW$22.9 billion for Lands, Agriculture, Fisheries, Water, and Rural Development, ZW$28.7 billion for Finance, Economic Development, and Investment Promotion, ZW$18.05 billion for Defence, ZW$10.7 billion for Public Service, Labour, and Social Welfare, ZW$5.4 billion for Transport and Infrastructure Development, and ZW$2.7 billion for Parliament. The Finance Act revises tax bands in Zimbabwean dollars, with annual incomes up to ZW$33,600 remaining tax-free.

Higher income brackets face graduated tax rates ranging from 20% to 40%. Other taxation highlights include a 10% tax on sports betting winnings, deducted at payout and remitted to the Zimbabwe Revenue Authority (Zimra). Betting houses will also pay 3% of their gross monthly income. A 0.5% surcharge on less healthy fast foods, including burgers, pizza, and chips, has been introduced, with detailed regulations forthcoming.

Additionally, a 20% surcharge on non-renewable plastic carrier bags, applicable to both locally manufactured and imported items, has been established. Prof. Ncube emphasized the budget’s role in bolstering national resilience. “This budget lays a foundation for inclusive growth and economic stability,” he stated.

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