Vongai Masuka

President Emmerson Mnangagwa has officially signed the Finance Act and the Appropriation Act into law, finalizing the legal framework for Zimbabwe’s 2026 National Budget following weeks of intense parliamentary debate and policy concessions.

The signing, announced by Chief Secretary to the President and Cabinet Dr. Martin Rushwaya in an Extraordinary Government Gazette, authorizes the Treasury to begin the disbursement of funds to government ministries and departments effective January 1, 2026.

The move marks the conclusion of a rigorous legislative cycle.

The budget, themed “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030,” was only approved after the Treasury addressed several sticking points raised by lawmakers in both the National Assembly and the Senate.

Under Section 131(6)(a) of the Constitution, the Finance Act now gives legal teeth to the new fiscal policy measures, while the Appropriation Act provides the specific expenditure votes required for government operations.

In a rare series of adjustments to his original proposal, Finance Minister Professor Mthuli Ncube retreated on several high-profile measures that had drawn fire from both the private sector and legislators.

The Minister withdrew a proposal to double gold royalties to 10%.

Following warnings that the hike would stifle mining investment, the rate will remain at 5% for gold priced between US1,200 and US5,000 per ounce.

A proposed levy on cash withdrawals was scrapped. Prof. Ncube agreed to increase the allocation for Parliament by ZiG800 million, bringing its total vote to approximately ZiG3.8 billion.

The Treasury acknowledged concerns regarding foreign currency withdrawal charges, showing a review to protect small businesses and diaspora remittances.

The ZiG 290 billion budget targets a near-zero deficit while prioritizing social services and infrastructure.

The budget also introduces a 15.5% Value Added Tax (VAT) (up from 15%) and reduces the Intermediated Money Transfer Tax (IMTT) on ZiG transactions from 2% to 1.5% to encourage the use of the local currency.