Zimbabwe’s fiscal performance for the first half of 2025 shows signs of stability, with budget execution broadly in line with projections, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has revealed during his presentation of the 2025 Mid-Term Budget and Fiscal Policy Review at the New Parliament in Mt Hampden.
“Despite a tightening global economic environment and domestic inflationary pressures, government revenue collections between January and June amounted to ZiG101.2 billion (US$3.7 billion), while expenditures reached ZiG98 billion (US$3.7 billion). These figures represent 35% of the total approved 2025 National Budget, suggesting prudent fiscal discipline in the first half of the year,” said Mthuli.
The 2025 National Budget, which was passed by Parliament in December 2024, is premised on projected GDP growth of 6%, with revenues of ZiG270.3 billion (19.6% of GDP) and expenditures of ZiG276.4 billion (20.1% of GDP). This results in a modest budget deficit of ZiG6.1 billion, or 0.4% of GDP.
In US dollar terms, the budget translates to US$7.5 billion in revenues, US$7.7 billion in expenditures, and a deficit of US$168.4 million.
Professor Ncube expressed confidence in meeting full-year fiscal targets, attributing the solid budget performance to improved tax administration, controlled spending, and steady foreign currency inflows.
Turning to public debt, the Minister reported that Zimbabwe’s total Public and Publicly Guaranteed (PPG) debt stood at ZiG576.5 billion as of 31 March 2025, equivalent to US$21.5 billion. This includes an external debt of US$12.6 billion (ZiG337.7 billion and a US$8.9 billion (ZiG238.8 billion) domestic debt.
This puts the debt-to-GDP ratio at 44%, a level the Minister described as “manageable but requiring close monitoring.”
While the figures reflect a moderate debt burden by regional standards, the government acknowledged the need to strengthen debt sustainability measures and maintain transparency in public borrowing.
