Zimbabwe Records ZWG3.3 Billion Budget Surplus Despite Low Half-Year Spending

Although only 35% of the 2025 National Budget had been utilized halfway through the year, Finance Minister Mthuli Ncube reported a budget surplus of ZWG3.3 billion in his Mid-Year Budget Review Statement.

Delivering the review under the theme “Building Resilience for Sustained Economic Transformation”, Ncube acknowledged ongoing concerns that government funds are often not released or used efficiently.

“From January to June 2025, government expenditure reached ZWG98 billion—roughly 35.5% of the full-year approved budget,” he said. “Of this, recurrent expenses totaled ZWG74.4 billion, while capital spending and net lending accounted for ZWG23.6 billion.”

The breakdown of spending revealed that ZWG45.4 billion went toward wages, ZWG18.8 billion covered operations, interest payments stood at a relatively low ZWG2.5 billion, and capital projects including devolution took up ZWG23.6 billion—highlighting limited investment in infrastructure.

Speaking to reporters after the presentation, Ncube attributed the low expenditure rate to slow disbursements, particularly in the early months of the year.

“Ministries often delay submitting the necessary documentation, and revenue inflows tend to be sluggish in the first quarter. These factors contribute to the low expenditure rate,” he explained, adding that the government is exploring ways to improve spending efficiency going forward.

He also noted that in the first half of 2025, Treasury raised ZWG1.3 billion for budgetary support, including US$90 million through the sale of domestic Treasury Bills.

In U.S. dollar terms, the fiscal framework shows total revenues of US$7.5 billion against expenditures of US$7.7 billion, resulting in a deficit of about US$168.4 million.

Ncube highlighted that the local currency, inflation, and exchange rate remained more stable than expected during this period. While budget performance in local currency terms lagged targets, it surpassed expectations in U.S. dollar terms.

Between January and June, revenue collections reached ZWG101.2 billion—below the ZWG118.1 billion target—while spending amounted to ZWG98 billion, falling short of the ZWG127.5 billion projection.

Overall, the government achieved a ZWG3.3 billion surplus on a cash accounting basis for the first half of the year.

Looking ahead, Ncube said the government would accelerate structural reforms in the second half of the year, with a focus on streamlining business processes and eliminating redundant licensing fees.