Why Zimbabwe’s 2026 National Budget Is The Worst Ever: Top Economist

Top Economist Declares Zimbabwe’s 2026 National Budget The Worst Ever

A leading economic expert has issued a scathing critique of the government’s financial plan for 2026, labelling it the most disastrous budget in the nation’s history. Professor Gift Mugano, a respected economist, has detailed a series of measures he believes will cripple investment, fuel inflation, and push citizens deeper into poverty. His analysis, widely shared on social media platform X, has sparked a fierce public debate over the direction of the country’s economic policy, with many citizens and business owners expressing deep concern about the proposed fiscal measures.

A Budget For Revenue, Not Growth

Professor Mugano argues that the budget focuses exclusively on extracting money from the economy rather than fostering development. He stated that the plan ignores the core mandate of promoting investment and is fundamentally flawed in its approach. He specifically targeted new and increased taxes, starting with a levy on cash withdrawals.

“Cash withdrawals levy – is an effective instrument of anti banking. Hakuna munhu akapusa anoisa mari mu bank kuti azotorerwa nehurumende oburisa mari yake.” (There is no fool who puts money in a bank so that the government can take it and reduce their money).

He was equally critical of the increase in Value Added Tax, warning of dire consequences for the cost of living. He also condemned the decision to maintain the 2% intermediary tax, stating,

“Increasing VAT to 15.5% will fuel inflation & make lives of people miserable… Keeping the 2% tax is unfortunate as it sustains informality, continue to push up the cost of doing business and fuel USD inflation which is sitting at 13.1%.”

This sentiment was echoed by X user LodzaTegs, who analysed the cumulative impact on workers, posting,

“PAYE, VAT and the 2% tax will result in formally employed workers contributing almost half of their earnings to the treasury and they will be no meaningful disposable incomes left and without spending there won’t be any multiplier effect on the economy.”

Shocking Debts And Unverified Payments

The economist raised serious concerns about governance and transparency, highlighting a staggering US$1.7 billion (approx. R30.6 billion) of unverified outstanding payments for the period 2022 to 2024. He questioned how the domestic debt could have increased by US$900 million (approx. R16.2 billion) in just three months, from July to September 2025, asking,

“Chii chakwidza debt ne US$900 million in a space of 3 months isu tichiti zvakarongeka?” (What increased the debt by US$900 million in a space of 3 months while we are saying everything is in order?)

He expressed particular alarm over a claim that US$700 million (approx. R12.6 billion) of the unverified money was spent on dam construction. He demanded accountability, comparing the figure to the cost of the completed Tokwe-Mukorsi dam.

“Strikingly, in a fashion that showcases ugly head of corruption, [ZimTreasury] reveals that as part of outstanding payments which are still to be verified, a staggering US$700 million has been spent on dams. Where are the dams which took all this money? One of the magnificent dams which was built inland by the first dispensation is Tokwe Mukasi and it costed around US$260 million (approx. R4.7 billion). If at least US$700 million which is claimed as unverified was spent on dams over and above verified & approved payments, are we saying this country has has completed at least 4 dams of Tokwe Mukosi type? Where are the dams?”

This point resonated strongly with the public. X user Simba Chips linked this to other cases of overspending, posting,

“The same things that caused Barbican to close are the same ways of operating that Mthuli is perpetuating here. Where are the houses by the Ministry of housing, what did the OPC do with all its budget, we are still driving on potholes where is 267% over budget. “Chivharo money!””

Public Outcry And A Call For Scrutiny

The public reaction to both the budget and Professor Mugano’s analysis has been one of widespread anger and agreement. Another X user, The Mushroom Company, summarised the sentiment by calling the budget a “blueprint of misery.”

Professor Mugano concluded with a call to action, urging for a major review of the budget before it is passed by Parliament. He expressed deep concern about the government’s proposed payment plan for the US$1.7 billion in unverified debts, which would see creditors wait until 2030.

“The 2026 budget requires massive scrutiny and review before it is passed hence our sustained commitment to debate it… It is our sincere hope that [the Confederation of Zimbabwe Industries] and [Parliament of Zimbabwe] will also undertake constructive discussions on this budget with a view to address several missteps exhibited in this budget.”

He warned that the current plan is “as good as a death sentence” for affected schools and businesses, emphasising the urgent need for a fundamental rethink of the government’s fiscal strategy.