Siphakeme .Mnindwa
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube presented the 2025 national budget on Thursday.
The ZiG276 billion fiscal plan, themed “Building Resilience for Sustained Economic Transformation,” seeks to provide a framework for greater national development next year as the country remains firmly on its path to achieving upper- middle-income status by 2030.
Observers have welcomed it, saying it prioritises social ministries such as education and health sectors, green energy, energy security, diversification of the economy and local manufacturing.
The minister projected that the economy will grow two percent this year thanks to the anticipated good harvest given the prediction of normal to above-normal rainfall across the country. The economy is likely to fare much better next year, growing by five percent.
The education sector will get top priority with 27 percent of the budget, followed by health with 13 percent. The ministries of agriculture, defence and home affairs will follow on that list. The figures clearly demonstrate the Government’s commitment to coming up with a pro-poor, pro-growth budget, which breaks barriers to access to education and health services by the majority of our people.
“The National Budget thrust during 2025 is to consolidate economic transformation and enhance the country’s resilience to shocks,” said the minister.
“The budget seeks to address persistent macro-economic vulnerabilities, as well as meet the developmental needs of citizens in a constrained fiscal environment. The 2025 National Budget will, therefore, focus on enhancing the macroeconomic and business environment, as well as delivery of social services to enhance the human capital base of the country.”
The envelope is indeed tight as the minster indicated. As a result, he cut ministries’ bids by up to 62 percent.
Overall, we are encouraged by the budget and are optimistic that it will advance the national effort to build resilience in the face of strong headwinds to achieve sustained socio-economic transformation and growth.
Among the positives we note is the Government’s intention to use the instruments it has to promote greater public health, boost adoption of electric vehicles, harness electricity generated by independent power producers for trade on the national grid. He extended rebate of duty on equipment used for setting up electric vehicle solar-powered charging stations, imported by approved operators.
He proposed a tax on ultra-processed foods which are known to cause many lifestyle diseases that are afflicting a growing number of our people. Pizzas, burgers, hot dogs, shawarma, French fries, doughnuts and similar products will be costlier come January, than they are now.
Just like the sugar tax which he introduced last year to, between January and this month, generate US$24 million that is being used to tackle cancer, we hope that the imposition of tax on processed foods will not just discourage our people from eating them but also raise money from those who find them irresistible.
We urge authorities to come up with more taxes on other luxuries.
