Budget Highlights
The 2026 National Budget Speech, presented by Hon. Prof. Mthuli Ncube, outlines Zimbabwe's financial plan under the theme “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030.” The budget serves as an implementation tool for the second National Development Strategy (NDS2) and focuses on fiscal consolidation, macroeconomic stability, and inclusive growth.
Key Highlights:
- Economic Outlook:
- Global economic growth projected to slow to 3.1% in 2026.
- Zimbabwe’s economy grew by 8.1% in the first half of 2025 and is projected to grow by 5.0% in 2026, driven by agriculture, stable currency, and exchange rates, steady mineral prices, and ease of doing business reforms.
- Inflation is expected to decline to single-digit levels in 2026.
- Revenue and Expenditure:
- Projected revenue for 2026: ZiG288 billion (US$9.4 billion).
- Projected expenditure: ZiG290 billion (US$9.5 billion), resulting in a small deficit of ZiG3.2 billion (US$105.9 million).
- Public Debt:
- Public debt as of September 2025: ZiG622.3 billion (US$23.4 billion), 44.7% of GDP.
- Strategic Priorities:
- Ten priorities under NDS2 include macroeconomic stability, inclusive growth, infrastructure development, agriculture, climate resilience, job creation, social protection, regional development, governance, and international relations.
- Sector Allocations:
- Health: ZiG30.4 billion for healthcare access and infrastructure.
- Education: ZiG47.4 billion for primary and secondary education.
- Agriculture: ZiG26.8 billion for irrigation, dam construction, and food security.
- Transport: ZiG4.6 billion for road and airport upgrades.
- Youth Empowerment: ZiG1.7 billion for initiatives and EmpowerBank.
- Housing: ZiG948.9 million for housing projects and infrastructure.
- Security: ZiG46.8 billion for personnel, equipment, and landmine clearance.
- Revenue Measures:
- Revised gold royalty rates based on price per ounce.
- Introduction of Digital Services Withholding Tax for payments to offshore platforms.
- Reduction of Intermediated Money Transfer Tax (IMTT) on ZiG transactions from 2% to 1.5%.
- VAT rate increased to 15.5% from January 2026.
- Tax incentives for businesses operating 24-hour production cycles and Business and Knowledge Process Outsourcing (BKPO) services.
- Development Partner Support:
- Development assistance projected at US$350 million in 2026, a 30% decrease from 2025.
- Ease of Doing Business Reforms:
- Reforms approved in sectors like livestock, tourism, transport, wholesale/retail, and energy, with plans to complete reviews in seven other sectors by Q1 2026.
- Conclusion:
- The budget aims to sustain economic stability, promote inclusive growth, and achieve Vision 2030 goals of becoming an Upper Middle-Income Economy.