Zimbabwe Budget Deficit Balloons as Spending Exceeds Target  - Zimbabwe Situation

Zimbabwe Budget Deficit Balloons as Spending Exceeds Target 

Zimbabwe’s budget deficit ballooned in the first nine months of the year as the government spent more than it planned, Finance Minister Mthuli Ncube said.

Source: Zimbabwe Budget Deficit Balloons as Spending Exceeds Target – Bloomberg

 

Ncube is struggling to stabilize an economy that’s reeling from a shortage of foreign exchange. The government is unable to raise international loans because it’s in arrears with creditors including the World Bank, so spending has been funded by domestic borrowing and a central-bank overdraft.

“The government desperately needs to cut back on spending, the current pace of government expenditure is simply unsustainable,” Jee-A van der Linde, an economist at NKC African Economics in Paarl, South Africa said. “This is fueling inflation.”

Following are the budget numbers Ncube presented to lawmakers Thursday in the capital, Harare.

Actual amount (Jan.-Sept.) Targeted amount (Jan.-Sept.)
Revenue $3.8 billion $3.36 billion
Expenditure $6.27 billion $4.07 billion
Deficit $2.5 billion $715.4 million

— With assistance by Antony Sguazzin

COMMENTS

WORDPRESS: 2
  • comment-avatar
    Morty Smith 1 week ago

    This seems to be the opposite of bringing the budget deficit under control. Give the civil servants a severe hair cut. Stop giving money to corrupt ZANU’s.

    All the free stuff is now being paid for and it is us who are paying as we watch the value of our salaries disappear.

  • comment-avatar
    Max Maphosa 7 days ago

    Do you think the mps who are demadind for the cars are aware of this. Do they know what a budget deficit means, if so then they shouldn’t be asking for cars.