Mid-term budget review today

Source: Mid-term budget review today | The Herald (Top Stories)

Debra Matabvu

FINANCE, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, will present the 2025 Midterm Budget Review in Harare this afternoon, providing an update on Zimbabwe’s economic performance in the first half of the year and outlining fiscal projections for the remainder of 2025.

The mid-year statement will offer an account of how the national budget has been utilised so far, while also shedding light on key economic indicators, including revenue collection, expenditure as well as deficit levels.

During his presentation, Prof Ncube will elaborate on Tuesday’s Cabinet approval of the review of levies, licences, fees and permits across 12 sectors of the economy, a move aimed at easing the cost of doing business in Zimbabwe.

In addition, the minister is expected to provide an update on the progress of tax reforms targeting the informal sector, including efforts to compel informal businesses to register for Corporate and Income Tax.

This follows findings from the 2023 Economic Census by the Zimbabwe National Statistics Agency (Zimstat), which revealed that 76,1 percent of business operations surveyed were classified as informal.

The minister is also anticipated to address calls from individuals and business leaders for a review of the personal income tax-free threshold.

Economic analysts further expect the midterm budget review to touch on the development of the 2026 National Budget Strategy Paper, outlining the Government’s fiscal priorities for the medium term.

In an interview, Prof Ncube said the review would not only evaluate the macroeconomic environment but also indicate any adjustments to the fiscal framework.

“It’s about really updating the nation on the state of the economy — global and local — and how budget utilisation has progressed in the first half of the year,” he said.

“Also, to talk about the outlook for the rest of the year and maybe a few pointers into next year.”

While today’s address will focus on the outlook for the remainder of the year, Prof Ncube noted that broader fiscal and economic plans for 2026 would be detailed in the full budget presentation scheduled for November.

“However, when it comes to next year, I will have the time to do that in November. That is when I explain it. But this is just for the rest of the year,” he said.

“For the rest of this year, I will explain if there has been a change in the fiscal framework, revenue projection, deficit expenditure and the state of the current account situation.

“So all of that will come out in any other policy positions that one wants to project.

I will be able to do that as well.”

Economic expert, Mr Persistence Gwanyanya, said he expected the mid-term budget review presentation to focus on measures the Government seeks to take regarding tax reforms to capture the informal sector.

In addition, Mr Gwanyanya said expectations from the mid-term budget included measures being implemented to clear the country’s debt and arrears and the 2026 national budget strategy papers as the country moves from National Development Strategy (NDS) 1 to the next phase of NDS 2.

“The 2023 economic census results released by ZimStat recently revealed that the economy is largely made up of the informal sector; thus, we expect the minister to highlight various measures that will include the sector in the tax bracket,” he said.

“We also expect measures that will combat revenue leakages in this sector.

“In addition, we expect the minister to talk about the review of levies, licence fees and permits in line with easing the cost of doing business.

“Further, the mid-term budget review must also look into the future, especially regarding the 2026 national budget strategy paper as the country transitions to NDS 2.

“NDS1 focused on infrastructure development; however, as we go into NDS 2, we expect the minister to speak on issues such as education, health and other social amenities that promote the well-being of communities.”

According to economic analyst, Mr Namatai Maeresera, this shift demands a new fiscal mindset.

“If nearly half the economy is informal, then tax and spending policies must reflect that. The review should propose mechanisms to gradually formalise the informal sector, through simplified licensing, digital tax filing and incentives for SMEs,” he said.

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