Story by Stanley James, Business Editor
ZIMBABWE has kept Government expenditure within Parliament-approved limits, reinforcing Treasury’s commitment to fiscal discipline ahead of the 2026 Mid-Term Budget and Economic Policy Review.
A report presented to Parliament by the Ministry of Finance, Economic Development and Investment Promotion shows that Government spent just over ZiG98 billion between January and May, below the budgeted allocation of ZiG100 billion.
The ministry said the expenditure accounts for 33 per cent of the 2026 National Budget of ZiG290 billion, equivalent to approximately US$9.5 billion.
Global Business Achievers Network Group Chief Executive Officer, Dr Tendesai Mushamba, said the spending pattern reflects Government’s commitment to sound fiscal management and long-term economic stability.
“This serves to show that the Government is on track towards achieving its economic targets by maintaining fiscal discipline. It indicates commitment to staying within the national budget instead of excessive spending that creates deficits, leading to borrowing or supplementary budgets, which are a huge challenge to the nation,” he said.
Treasury has also indicated that it does not intend to introduce additional tax measures or a supplementary budget.
Chartered Governance and Accountancy Institute in Zimbabwe Chief Executive Officer, Dr Lovemore Gomera said the approach would promote economic certainty.
“By ruling out additional tax measures, Treasury is guaranteeing the market predictable conditions characterised by lower production costs. This should translate into increased production and consumption, while enabling Government to deploy resources in a manner that supports economic growth,” he said.
Treasury is expected to present the 2026 Mid-Term Budget and Economic Policy Review on Thursday, where it will assess economic performance during the first half of the year, review revenue and expenditure trends, and outline projections for the remainder of 2026.
