Economics
Zimbabwe Budget Deficit Balloons as Spending Exceeds Target
- Deficit ballooned to $2.5 billion in nine-month period
- Government spending is being financed by domestic borrowing
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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.
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.