NEW: Zimbabwe records ZiG2,3 billion budget deficit, Treasury projects higher revenues

Online Reporter

Treasury reported a ZiG2,3 billion budget deficit for the first half of 2024, but assured the nation that the full-year budget is sufficient to cover Government operations in the absence of other significant shocks.

According to Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube in his 2024 Mid-Term Budget Review Statement presented at the New Parliament Building in Mt Hampden this afternoon, Government collected ZiG36,5 billion in revenue against expenditure estimates of ZiG38,9 billion during the first six months, resulting in the ZiG2,3 billion deficit.

Minister Ncube attributed the lower-than-expected revenue to a challenging economic environment, increased debt servicing costs, the currency transition and drought response measures.

He said the budget shortfall was financed through borrowing and carried-over cash balances.

The recalibrated 2024 macro-fiscal framework projects a year-end deficit of ZiG5,6 billion (1,3 percent of GDP) against projected revenues of ZiG93,2 billion (22 percent of GDP) and expenditures of ZiG98,8 billion.

The new revenue target is higher than the previously projected ZWL58,2 trillion or ZiG87,9 billion.