Govt’s firm hand on spending bears fruit: Mthuli

SAMANTHA MADE

Zimbabwe’s government has reported a budget surplus for the first quarter of this year, with Finance Minister Mthuli Ncube underscoring the administration’s unwavering commitment to fiscal discipline and economic responsibility. The latest figures, presented at a post-Cabinet media briefing, reflect a clear intent by the Treasury to manage public finances prudently amid limited borrowing space.

Revenues for the quarter reached US$ 1.57 bn, while expenditure was held in check at US$ 1.53bn—resulting in a modest but significant budget surplus. Ncube attributed this performance to the government’s strategy of aligning spending with available resources.

“In terms of revenues, we managed to raise US$1.57bn in Q1,2025. In terms of expenditure, it was US$1.53bn. So again, we were able to live within our means,” Ncube stated.

“We always try to run a tight budget because of limited space for borrowing, especially externally, so we try to live within our budget in terms of expenditure.”

The surplus comes at a time when Zimbabwe faces constrained access to international credit markets, forcing the Treasury to adopt a pay-as-you-go approach to public finance.

Ncube noted that this environment leaves little room for fiscal slippage, making financial discipline not just a choice but a necessity.

He also emphasized that the government’s commitment to matching expenditure with revenue is not only about meeting fiscal targets, but also about sustaining economic stability in a challenging environment.

By limiting deficit spending, Zimbabwe aims to reduce inflationary pressures and rebuild confidence in its public finance management.

In line with the Economic Growth Pillar of the National Development Strategy 1 (NDS1), the Finance Minister announced that both tax and non-tax revenue mobilization exceeded the first-quarter targets.

This strong revenue performance points to the growing effectiveness of government efforts to broaden the tax base and enhance compliance.

The Cabinet also provided updates on the ongoing implementation of the Tax and Revenue Management System (TaRMS), a multi-phase digital platform designed to modernize revenue collection and enforce compliance. Under the Economic Growth and Stability Pillar, the system has made notable progress across several key components.

The Release 1 Core Frontend processes and the Release 2 Tax Agent Module are both fully implemented. Most of the Release 3 back-end processes—four out of five—have also been completed. However, system integration and the Risk Compliance Management Module are still being finalized. User acceptance testing of Phase 1 of the Risk Compliance Management Module is complete, while Phase 2 is underway.

Under the broader fiscalisation process, integration is in progress with three local banks and five government departments. The Cabinet reported that the Business Intelligence Reporting project is advancing according to plan. In addition, preparations are underway for the launch of a Single Account Automatic Re-opening feature, aimed at enhancing the automation of public financial management.

“Under the Fiscalisation processes, the following achievements were highlighted: internal integration with three banks is in progress, while external integration is ongoing with five Government departments. The User acceptance testing of the Risk Compliance Management Module Phase 1 is now complete, and Phase 2 is ongoing. The Business Intelligence Reporting project is on course, while the launch of the Single Account Automatic Re-opening is in progress,” the Cabinet revealed.

These developments mark a continued effort by the Zimbabwean government to modernize its revenue systems, strengthen oversight, and close loopholes that have historically contributed to revenue leakages. The integration of technology into fiscal administration is seen as a key enabler in promoting transparency, boosting revenue collection, and enhancing economic governance.

While the surplus remains modest in relative terms, it sends a strong signal about the government’s policy direction. In a context where many African economies are struggling with rising debt and fiscal deficits, Zimbabwe’s effort to “live within its means” positions it as a case study in cautious optimism. By exercising fiscal restraint and investing in long-term revenue systems, the government appears intent on building a sustainable foundation for economic recovery.

As Ncube concluded, “We always try to run a tight budget… so we try to live within our budget in terms of expenditure.” It is a message that suggests Zimbabwe is prepared to tread a path of financial discipline—however narrow—in pursuit of stability.