Budget deficit seen topping $3 billion

The Parliament Budget Office (PBO) says the budget deficit could reach a “record breaking” $3 billion this year as Finance and Economic Development minister Mthuli Ncube says he will soon announce cost-containment measures to lower State expenditure.

The PBO says rising expenditure has been skewed towards recurrent spending due to rising government employment costs and capital transfers, with the deficit accounting for 11,6% of gross domestic product (GDP).

Zimbabwe recorded a budget deficit of $2,6 billion last year, 8,4% of the GDP.

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