Loraine Phiri
The Government of Zimbabwe has issued directives to curb government spending and ensure all public expenditures remain within the 2025 approved budget.
In Treasury Circular Number 10 of 2025, dated 24 September, the Secretary to the Treasury George Guvamatanga said the measures take “immediate effect” as part of fiscal consolidation to promote effective and efficient public spending.
“Unbudgeted expenditures over the years have driven expenditure growth, resulting in the government missing some targeted economic indicators such as the fiscal deficit,” the circular warned. “Unbudgeted expenditures crowd out appropriated expenditures, thereby affecting national budget credibility.”
The circular reminds all accounting officers to strictly abide by the Constitution of Zimbabwe Amendment (No. 20) Act of 2013 and the Public Finance Management Act \[Chapter 22:19] in managing public resources. Treasury said it would enforce penalties for any non-compliance. “In order to control the above situation, all Accounting Officers are required to abide by these binding legal instruments,” the curcular emphasized.
Under the new rules, all Ministries, Departments, and Agencies (MDAs) are instructed not to enter into any contracts worth US$2 million or more without prior written concurrence from the Treasury. For contracts below that threshold, commitments must remain within the appropriate fiscal resources for the current year.
“Accordingly, all contracts or agreements that have not undergone this mandatory process will be void and not honored by the government,” the secretary stated. “MDAs shall enter into contracts with suppliers guided by the approved budget to avoid over-contracting and further accumulation of arrears.”
The circular further directs that no payments will be made for unbudgeted expenditures. “This implies that no payment is made on unbudgeted expenditures,” the circular reiterated.
To further reduce costs, Treasury ordered MDAs to use government training institutions such as the Zimbabwe Institute of Public Administration and Management (ZIPAM) and the Public Service Commission (PSC) Academies for workshops and seminars.
“In order to reduce expenditures on domestic workshops, MDAs are directed to utilise public training institutions for their workshops and seminars,” the secretary said.
The circular adds that the initiative is intended to save public funds by leveraging readily available, underutilised government facilities instead of expensive private venues, hotels, or resorts. “This initiative aims to save public funds by leveraging on readily available, underutilised government facilities instead of expensive private venues, hotels, or resorts,” the secretary noted.
Additionally, MDAs are advised to use venues that are geographically close to participants to minimise transport and daily subsistence costs.
“MDAs are directed to use facilities that are geographically close to the majority of participants to minimise costs on transport and daily subsistence allowances,” the Treasury Secretary directed.
Treasury said the measures are designed to strengthen budget discipline, ensure fiscal resources are used as intended, and maintain the credibility of the national budget.
