President Mnangagwa Signs Key Acts to Implement 2025 National Budget

President Mnangagwa has officially signed into law two crucial Acts enabling the implementation of the ZiG276.4 billion 2025 National Budget presented by Finance Minister Professor Mthuli Ncube on November 28, 2024.

The Appropriation Act, which authorizes the majority of government spending for the year, and the Finance Act, which enacts tax changes outlined in the budget, were published in an Extraordinary Government Gazette on Monday following the President’s assent.

These Acts empower the government to allocate funds approved by Parliament and enforce tax changes, including newly imposed taxes on previously untaxed sectors, such as parts of the informal economy.

The 2025 Budget projects revenues of ZiG234.7 billion through the Consolidated Revenue Fund and an additional ZiG6.25 billion in retention funds earmarked for specific initiatives under the Public Finance Management Act.

Parliament approved the budget in December 2024 after five days of debate, with legislators across the political spectrum scrutinizing how it supports economic growth and builds resilience for diverse groups.

Key Budget Highlights

Finance Minister Ncube emphasized that resilience-building measures included investments in agriculture, particularly dam construction to support irrigation, enhancing farmers’ ability to cope with climate shocks and food insecurity.

The budget also allocated resources to support women entrepreneurs through the capitalization of Empowerbank and the Women’s Bank. Additionally, ZiG211 million was set aside for providing sanitary wear to young girls, primarily through public schools.

Fiscal discipline remains a priority, with the budget deficit projected to stay below 1 percent of GDP.

Major Allocations

• Education: Ministry of Primary and Secondary Education received the largest allocation, ZiG46.7 billion.
• Health: Ministry of Health and Child Care was allocated ZiG28.8 billion.
• Agriculture: Lands, Agriculture, Fisheries, Water, and Rural Development received ZiG22.9 billion.
• Finance: Finance, Economic Development, and Investment Promotion Ministry was allocated ZiG28.7 billion.
• Defence: Ministry of Defence received ZiG18.05 billion.
• Social Welfare: Ministry of Public Service, Labour, and Social Welfare was allocated ZiG10.7 billion.
• Transport: Ministry of Transport and Infrastructure Development got ZiG5.4 billion.
• Parliament: Allocated ZiG2.7 billion.

Taxation Adjustments

The Finance Act revised income tax bands, with the non-taxable threshold set at ZiG33,600 annually. Tax rates now range from 20 percent to 40 percent, depending on income levels.

Additional tax measures include:

• Sports betting: A 10 percent tax on winnings and a three percent tax on betting house gross income.
• Fast foods: A 0.5 percent surcharge on less healthy items like burgers, pizza, and doughnuts.
• Plastic bags: A 20 percent surcharge on non-renewable plastic carrier bags.

These measures reflect the government’s efforts to balance fiscal discipline with developmental priorities, positioning Zimbabwe for sustained growth and economic resilience.