High domestic debt fuels cash shortages

Uncontrolled spending has seen the domestic debt reaching $3,7 billion in October amid warnings by analysts the runaway debt is fuelling cash shortages.

According to Treasury data, the domestic debt has ballooned from under $500 million in 2013 to the current figures, raising questions on the ability of government to live within its means, as it has been borrowing from the domestic market through issuing Treasury Bills.

From 2009 to 2011, government had no domestic debt, as then Finance minister Tendai Biti pushed for a balanced budget.

This story is for NewsDay subscribers.