Story by Owen Mandovha
TREASURY is expected to present the 2026 Mid-Term Budget Review on Thursday next week, assessing the implementation of the national budget and progress towards the country’s economic growth targets.
The review is a statutory requirement that assesses the performance of the national budget during the first half of the year and outlines any corrective measures required to achieve the set fiscal and economic objectives.
Revenue collections exceeded targets during the first two quarters of the year, a development that is expected to influence the review by Minister of Finance, Economic Development and Investment, Professor Mthuli Ncube.
Economic analysts say the stronger-than-expected revenue performance presents an opportunity for Treasury to consider measures aimed at supporting the private sector and easing the tax burden on workers.
“Fantastic in terms of performance in the first half of the year, as revenue measures are being successful, but the pleading for Treasury to see it as an opportunity to reduce Pay As You Earn to leave more money in their pockets,” Chief Executive Officer of Africa Roundtable, Mr Kipson Gundani, said.
Economist Mr Persistence Gwanyanya said the revenue performance could result in an upward revision of the national budget.
“The initial budget was set at US$9.7 billion, and the budget surplus points to a bigger budget given that we collect much of our taxes in the second half of the year. So an upward review is a huge possibility,” he said.
Lecturer at Marondera University of Agricultural Science and Technology (MUAST), Dr Vimbai Mutokonyi, also said the country’s economic performance supports a review of the budget.
“The economy is growing, and this justifies a review of the budget given that already we are in a marginal surplus,” she said.
The Mid-Term Budget Review comes at a time when Zimbabwe is experiencing a relatively stable macroeconomic environment characterised by low inflation. However, the private sector continues to call on Treasury to introduce measures that support job creation and industrialisation.
