By Alois Vinga
Despite the fact that just 35% of the 2025 National Budget allotted funds were spent six months into the year, Finance Minister Mthuli Ncube declared a ZWG3.3 billion budget surplus in the Mid-Term Budget Review Statement.
Presenting the much-awaited Mid-Term Budget Review Statement, Thursday themed, “Building Resilience for Sustained Economic Transformation”, the Treasury boss confirmed earlier speculation that much of the allotted resources are rarely disbursed efficiently
“Fiscal outlays for the period January to June 2025 amounted to ZWG98 billion, which is approximately 35.5% of the approved Budget. Recurrent expenditures were ZWG74.4 billion, while financial and non-financial assets (capital expenditure and net lending) amounted to ZWG23.6 billion,” he said.
Of this amount, more than half with ZWG45.4 billion, went towards employment costs and operations ZWG18.8 billion, interest payments paltry at ZWG2.5 billion and capital expenditure, including devolution, amounted to ZWG23.6 billion, leaving very few resources for capital expenditure.
However, speaking to the media shortly after the budget presentation, Ncube defended the 35% expenditure to slower drawdowns by Ministries in the first quarter of the year.
“Ministries often take time to put their papers in order and we often experience limited revenue inflows during the first parts of the year which partly explains the expenditure patterns. However, we are currently working on improving ways in which expenditures can improve,” he said.
Ncube said during the year’s first half, Treasury mobilised resources for budget financing totalling ZWG1.3 billion, including US$90 million Treasury Bills, through the issuance of domestic securities.
In US dollar terms, the fiscal framework translates to revenues of US$7.5 billion and expenditures of US$7,7 billion, as well as a budget deficit of US$168.4 million.
He said during the first half of the year 2025, both inflation and exchange rate were relatively stable than envisaged. The budget has, therefore, been performing below target in local currency terms, although performance was significantly above target in foreign currency terms.
Revenue collections during the period amounted to ZWG101.2 billion against a target of ZWG118.1 billion, whilst expenditures were ZiG98 billion against a target of ZWG127.5 billion.
On a cash accounting basis, a budget surplus of ZWG3.3 billion was recorded during the first six months of the year.
Ncube added that drastic reforms aimed at improving the ease of doing business and the eradication of multiple licensing fees would be aggressively implemented in the second half.