KEY POINTS
- Mnangagwa signs bills enabling ZiG276.4 billion ($10.7 billion) budget disbursement.
- New taxes include the sports betting tax, fast foods tax, and the plastic bag tax.
- Health and education sectors are allocated the largest budget for 2025.
President Emmerson Mnangagwa has signed two critical Bills into law, allowing government ministries and agencies to access their 2025 National Budget allocations.
The announcement, made via an Extraordinary Government Gazette, confirms that the Finance Act and Appropriation Act are now in effect, clearing the way for the disbursement of the ZiG276.4 billion ($10.7 billion) budget approved by Parliament last November.
Where the Appropriation Act outlines the expenditure for the financial year, other measures, including the Finance Act, set out the legal regime under which the expenditure shall occur.
With these approvals in place, ministries will be able to start applying to the Ministry of Finance to access their own funds.
New taxes to boost revenue amid budget allocations
In a bid to finance the above budget, Finance Minister Mthuli Ncube has introduced several taxes intending to increase the Government’s revenue.
These include a 10 percent tax on sports betting winnings, a 0.5 percent surcharge on unhealthy fast foods, and a 20 percent surcharge on non-renewable plastic carrier bags.
Free from taxes, which they have avoided in the past, the informal sector is also now compelled to pay under the new policies.
Nevertheless, some of the taxes aimed at improving the nation’s efficiency and output have attracted opposition from lawmakers and the public.
Legislators have called for enhanced mining royalties and potentially higher levels of investment in exploration.
According to New Zimbabwe, the Ministry of Mines was allocated ZiG764.8 million ($19.1 million), a sum many feel is insufficient to meet the country’s mining potential.
Key ministries and critical sectors see varied allocations
The 2025 National Budget reflects Zimbabwe’s priorities, with education and health receiving significant attention.
In the budget, the Ministry of Primary and Secondary Education has proposed the highest share of ZiG46.7 billion ($1.8 billion) to deal with recurrent challenges such as Better Education Assistance Module (BEAM) funding.
Health and Child Care received ZiG28.8 billion ($1.1 billion) although public health institutions are still struggling to get basic resources such as syringes and baby cards.
Other major allocations include ZiG22.9 billion ($886 million) for the agricultural sector, ZiG18.05 billion ($698 million) for defense, and ZiG10.7 billion ($414), for general public services.
Transport and infrastructure development were allocated ZiG5.4 billion ($209 million), while Parliament received ZiG2.7 billion ($104.5 million).
Total revenue for the Treasury is projected at ZiG234.7 billion ($9.1 billion), and additional retention funds of ZiG6.2 billion ($241 million) as provided under the Public Finance Management Act.
