...10 Steps backwards
…as heavy taxation and budget gaps furthering inequalities
Zimbabwe's 2025 National Budget has sparked intense debate, with many criticizing its failure to address
poverty and inequality. Despite the government's claims that the budget will drive economic recovery and
resilience, a closer look reveals systemic shortcomings that exacerbate these issues. The budget relies heavily
on regressive taxation, which disproportionately burdens low-income citizens. Value Added Tax (VAT) and
other consumption-based taxes have been increased, despite the fact that rising inflation and stagnant
wages are eroding purchasing power for ordinary households. Furthermore, the budget underscores
Zimbabwe's chronic underinvestment in critical social sectors, such as health and education. The country is
performing below its potential in guaranteeing basic economic and social rights, with only 69.1% of what is
possible achieved in providing decent living standards.
The budget also fails to address systemic issues driving inequality, such as corruption and inefficient
bureaucracy. Women and youth remain excluded from formal employment sectors, perpetuating cycles of
poverty and dependence. To address Zimbabwe's socio-economic challenges, a human rights-centered
approach is crucial. This involves prioritizing progressive taxation, shifting the burden from consumption taxes
to wealth and corporate taxes, to reduce poverty and inequality. Additionally, increasing social spending in
health, education, and social protection is essential to promote human dignity and address the needs of
vulnerable populations. Finally, strengthening transparency and accountability mechanisms will ensure
allocated funds reach intended beneficiaries, preventing corruption and mismanagement of resources.
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