Zimbabwe tightens public spending- New Treasury Circular

The Government of Zimbabwe has issued Treasury Circular Number 10 of 2025, outlining strict expenditure containment measures aimed at restoring fiscal discipline and safeguarding the credibility of the national budget.

According to the circular, all Ministries, Departments, and Agencies (MDAs) are now required to ensure that expenditures remain strictly within the 2025 Approved Budget. Unbudgeted spending has been highlighted as a key driver of fiscal deficits and missed economic targets in previous years.

To curb this, Treasury has reinforced compliance with the Constitution and the Public Finance Management Act, warning that penalties will apply to officers who fail to adhere.

A major directive requires MDAs to obtain prior written concurrence from Treasury before entering into contracts valued at US$2 million or more. For contracts below this threshold, budgetary commitments must still fall within approved allocations.

Any agreements made outside this process will be declared void, with no payments made for unbudgeted expenditures.

In addition, the circular emphasizes cost-cutting on workshops and seminars. MDAs must now use government training institutions such as the Zimbabwe Institute of Public Administration and Management (ZIPAM) instead of costly private venues.

Where possible, training facilities geographically closer to participants should be prioritized to minimize travel and subsistence expenses.

These measures, effective immediately, reflect Treasury’s fiscal consolidation agenda and its determination to limit wasteful expenditure while promoting efficient use of public resources.

Zim Economic Review