WATCH: Prof Ncube backs new fiscal rules as Budget deadline set

FINANCE, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has welcomed new statutory fiscal rules governing the preparation of the National Budget, saying tighter expenditure controls are critical to preventing Government from crowding out private-sector investment and maintaining macroeconomic stability.

His comments come after Government introduced a formal Budget preparation timetable which requires the National Budget to be presented to Parliament no later than the third Thursday of November each year.

Speaking on the sidelines of ZEDCON 2026 in Bulawayo on Friday, Prof Ncube said the new framework, which provides greater clarity on fiscal rules and expenditure ceilings, was important for sustainable economic growth.

“It’s very important for us as a country to have very clear and consistent fiscal rules. So this is part of doing that, having more clarity on our fiscal rules, making sure that the expenditure ceilings is quite important.

“Because we can only grow if a government does not crowd out the private sector which is more resources than government,” said.

He said excessive borrowing and uncontrolled fiscal expenditure could undermine economic growth by creating instability and putting pressure on the broader economy.

“We can only grow if we don’t over borrow beyond our means because excessive growing borrowing can slow down economic growth and also if we fiscal expenditure gets out of control we end up impacting money supply growth and then causing instability.

“Instability is not pro-growth. It is not pro-development, it is anti-development, anti-growth.”

Prof Ncube said the formalisation of the fiscal rules would help Government manage the economy more prudently from both fiscal and monetary perspectives.

“So these fiscal rules are very, very important for making sure that we can manage our economy prudently within the fiscal and monetary sense and I’m pleased that we’ve been able to do this.”

The Minister’s comments followed the publication of Statutory Instrument 153 of 2026, Public Finance Management (General) (Amendment) Regulations, 2026 (No. 2), in the Government Gazette dated October 2.

The regulations amend the Public Finance Management (General) Regulations, 2019, and repeal the Public Finance Management (General) (Amendment) Regulations, 2021, published under SI 127A of 2021.

Under the new framework, the Finance Minister will determine the annual Budget process through a defined timetable covering strategic planning, fiscal reviews, expenditure ceilings, Budget submissions and parliamentary consideration.

Ministries, departments and agencies are required to provide input into the Budget Strategy Paper and Mid-Year Budget and Economic Review, including revised strategic priorities and expenditure intentions, by June 1.

The Finance Ministry must then present the Budget Strategy Paper and Mid-Year Fiscal Review to Cabinet by July 15 and to Parliament by July 31.

Treasury will subsequently update the macroeconomic performance and forecast by September 1 before issuing the Second Budget Call Circular, containing medium-term expenditure ceilings, by September 10.

Government ministries, departments and agencies will then be required to submit their Budget proposals by September 30.

Budget discussions between Treasury and individual ministries, departments and agencies will run from October 1 to October 21, providing a defined period for scrutinising and reconciling spending proposals.

The proposed Budget will then be presented by the Minister to Cabinet at any Cabinet meeting in November before being taken to Parliament.

The regulations stipulate that the Budget must be presented to Parliament “no later than the 3rd Thursday of November”, after which it will be debated and approved.

The new timetable places greater emphasis on ensuring that spending proposals are aligned with updated macroeconomic forecasts and medium-term expenditure ceilings before they are presented to Cabinet and Parliament.

The formal timetable provides greater visibility over the timing of key fiscal decisions, including the Government’s expenditure framework and spending priorities, while strengthening the process through which public spending is matched against available fiscal resources.

The regulations were made by the Minister pursuant to Section 92 of the Public Finance Management Act [Chapter 22:19] and now provide the statutory framework governing Zimbabwe’s annual Budget preparation process.