HARARE
–
Treasury
has
announced
sweeping
new
measures
to
rein
in
government
spending,
including
a
freeze
on
recruitment,
a
25
percent
cut
in
fuel
allocations,
a
ban
on
workshops
in
hotels,
and
restrictions
on
foreign
travel.
The
directive,
contained
in
Treasury
Circular
Number
10
of
2025
signed
by
finance
secretary
George
Guvamatanga,
is
aimed
at
enforcing
fiscal
discipline
after
years
of
unbudgeted
expenditures
that
have
undermined
budget
credibility
and
widened
the
deficit.
With
immediate
effect,
ministries,
departments
and
agencies
(MDAs)
are
prohibited
from
entering
into
contracts
above
US$2
million
without
written
approval
from
treasury.
Any
agreements
signed
outside
the
new
vetting
process
will
be
declared
void,
the
circular
warned.
“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.
To
cut
operational
costs,
government
has
ordered
that
all
domestic
workshops
be
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
authorised
if
fully
funded
by
external
partners.
Special
allowances
for
travel
have
also
been
scrapped,
with
civil
servants
directed
to
use
standard
per-diem
rates.
Hiring
of
vehicles
by
ministries
has
been
banned,
while
government
pool
cars
will
now
be
closely
monitored
through
log
books
and
barred
from
being
taken
home
after
hours
or
on
weekends.
In
a
major
shift,
treasury
has
frozen
new
recruitment
in
the
public
sector,
except
for
essential
posts
in
health,
education
and
security
that
are
already
budgeted
for
in
2025.
Institutions
funded
from
the
Consolidated
Revenue
Fund
must
also
migrate
to
the
Salary
Service
Bureau
platform
for
payroll
management
to
improve
transparency
and
curb
leakages.
Fuel
allocations
for
operations
are
being
slashed
by
25
percent,
while
purchases
of
vehicles,
furniture
and
equipment
have
been
deferred
to
the
2026
budget.
Only
high-impact
capital
projects
and
those
with
running
payment
commitments
will
receive
funding
for
the
rest
of
the
year.
“These
expenditure
rationalisation
measures
are
effective
immediately,”
Guvamatanga
wrote,
adding
that
MDAs
should
negotiate
long-term
settlement
plans
with
service
providers
to
ensure
sustainability.
The
government’s
belt-tightening
comes
amid
mounting
pressure
to
restore
fiscal
stability
as
the
economy
battles
high
inflation,
currency
volatility
and
rising
debt.