Ncube is struggling to stabilise 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.