Harare, (New Ziana) – The government has rolled out sweeping austerity measures designed to curb runaway expenditure and restore fiscal discipline, with Treasury directing ministries and agencies to immediately scale down spending.
According to Treasury Circular Number 10 of 2025, signed by Finance Secretary George Guvamatanga, the new rules introduce strict controls on recruitment, foreign travel, and operational expenses.
The measures, he said, are meant to plug leakages, enforce budget credibility, and steer the economy toward stability after years of fiscal slippages.
Among the directives, all state entities are now barred from signing contracts exceeding US$2 million unless they obtain prior written approval from Treasury.
Any agreements entered outside this framework will be invalidated.
Accounting officers, the circular stressed, must strictly adhere to the Public Finance Management Act, with penalties awaiting those who flout the rules.
Workshops and seminars, often criticized for draining resources, have been suspended for the rest of the year. Only statutory and strategic planning meetings will be permitted—and these must be held at government institutions such as the Zimbabwe Institute of Public Administration and Management (ZIPAM), not hotels.
Foreign travel has also been tightened, with trips only sanctioned when fully sponsored by development partners. Treasury further scrapped special travel allowances, directing civil servants to use standardized per-diem rates.
In addition, ministries can no longer hire vehicles, while pool cars will be strictly monitored through log books and barred from use outside official duties. Purchases of new vehicles, furniture, and equipment have been postponed until the 2026 budget cycle.
To cut wage-related costs, a freeze on public sector recruitment has been imposed, save for critical posts in health, education, and security—positions already accounted for in the current budget. Institutions drawing funds from the Consolidated Revenue Fund are now required to process salaries through the Salary Service Bureau to strengthen transparency and reduce financial leakages.
Fuel allocations across government departments will also be trimmed by 25 percent, while operational funds will be prioritized only for capital projects with ongoing commitments or those deemed of high impact.
“These expenditure rationalization measures take effect immediately,” Guvamatanga wrote in the directive, urging ministries and agencies to engage service providers in long-term settlement plans to ensure sustainability.
The move is the latest in a series of efforts by Treasury to rein in ballooning public spending and restore confidence in the country’s fiscal management.
New Ziana
