Zimbabwe treasury orders tough spending cuts

The Treasury has unveiled a series of stringent measures aimed at curbing government spending, including a freeze on recruitment, a 25 percent reduction in fuel allocations, a ban on workshops in hotels, and strict restrictions on foreign travel.

Outlined in Treasury Circular Number 10 of 2025, signed by Finance Secretary George Guvamatanga, the directive seeks to enforce fiscal discipline following years of unbudgeted expenditures that have eroded budget credibility and expanded the deficit.

With immediate effect, ministries, departments, and agencies (MDAs) are barred from entering contracts above US$2 million without written approval from Treasury. Any agreements signed outside the new vetting process will be considered void.

"All accounting officers are required to abide by the Constitution and the Public Finance Management Act on the management of public resources, with Treasury enforcing penalties on non-compliance," Guvamatanga said.

In a bid to cut operational costs, all domestic workshops are suspended for the remainder of 2025, except for statutory and strategic planning meetings, which must be held at government training centres such as the Zimbabwe Institute of Public Administration and Management (ZIPAM).

Foreign trips will only be permitted if fully funded by external partners, while special travel allowances have been scrapped and civil servants must adhere to standard per-diem rates. Ministries are also prohibited from hiring vehicles, with government pool cars now closely monitored and barred from home use after hours or on weekends.

Recruitment in the public sector has been frozen, except for essential posts in health, education, and security already budgeted for in 2025. Institutions funded by the Consolidated Revenue Fund must migrate to the Salary Service Bureau platform for payroll management to improve transparency and curb leakages.

Fuel allocations for operations are being cut by 25 percent, and purchases of vehicles, furniture, and equipment have been deferred to the 2026 budget. Only high-impact capital projects and those with ongoing payment commitments will receive funding for the rest of the year.

"These expenditure rationalisation measures are effective immediately," Guvamatanga wrote, urging MDAs to negotiate long-term settlement plans with service providers to ensure sustainability.

The government's austerity measures come as Zimbabwe faces mounting economic pressures, including high inflation, currency volatility, and rising debt, prompting urgent action to restore fiscal stability.