HARARE – Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, is set to deliver the 2025 Mid-Term Fiscal Policy Review Statement and unveil the Budget Strategy Paper for the 2026 National Budget tomorrow, 31 July 2025.
The highly anticipated fiscal review comes at a time of major shifts in both domestic and global economic conditions. Among the most significant developments is the fallout from the dismantling of the United States Agency for International Development (USAID), a move linked to former U.S. President Donald Trump’s renewed “America First” policy direction.
The closure of USAID operations has dealt a heavy blow to Zimbabwe’s donor-dependent healthcare system, particularly affecting programmes related to HIV, tuberculosis, and malaria.
With donor funding under severe strain, expectations are high that Professor Ncube will outline strategies to fill the financing gap, while also upholding the government’s commitment to low taxation and prudent revenue mobilisation. The challenge will be balancing fiscal sustainability with growing public demand for essential services, especially in the health and education sectors.
It remains to be seen whether the minister will announce a supplementary budget or resort to reallocating underutilised funds from government ministries and departments. Many public institutions have failed to absorb their full allocations in recent years due to delays in Treasury disbursements and bureaucratic inefficiencies.
Despite frequent fiscal overruns, Minister Ncube has traditionally avoided introducing supplementary budgets, often citing the need for expenditure discipline and macroeconomic stability.
Tomorrow’s presentation will also reflect efforts to implement President Emmerson Mnangagwa’s directive to overhaul the country’s complex tax and levy structure in a bid to improve the business environment and attract foreign direct investment.
Zimbabwe continues to struggle with investor confidence, hampered by policy unpredictability and high-risk perceptions in the global financial markets.
Analysts will be watching closely for indications of structural reforms, fiscal discipline, and targeted social spending as the government navigates a challenging economic landscape heading into the 2026 financial year.
Originally published on The Zimbabwe Mail
Source: Thezimbabwemail
