Zimbabwe tightens purse strings, bans unplanned spending for 2025

Zimbabwe's Treasury issued Circular Number 10 of 2025, mandating strict adherence to approved budgets across all government ministries, departments and agencies. The directive prohibits unplanned expenditures and threatens penalties for violations after years of fiscal indiscipline widened the deficit.

Contracts exceeding $2 million require Treasury's written consent while smaller agreements must fit within current allocations. Government suspended workshops and conferences through 2025 except for statutory meetings and banned foreign travel unless externally funded.

Authorities implemented a general hiring freeze excluding health, education and security positions already budgeted. Fuel allocations face 25 percent reductions while vehicle procurement delays until 2026.

The measures target three capital project categories for continued funding while deferring equipment purchases. Officials say the restrictions will restore budget credibility and reduce accumulated arrears.
 

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