Government will not have a supplementary budget this year as the country is projecting an annual budget deficit of US$500 million as a result of a huge wage bill and the importation of grain.
This was revealed by Finance Minister, Mr Tendai Biti while responding to oral questions directed to ministers in the House of Assembly.
Minister Biti said the nation should brace for trying times as the country has failed to meet the projected target for monthly revenues as a result of unforeseen circumstances.
“I want to emphasise to honourable members that there would be no supplementary budget. A supplementary budget presupposes that there is capacity and scope to increase revenues, and unfortunately, we have no capacity to increase our revenues,” said Mr Biti.
He said there is going to be a collapse of the fiscal space as the government will have to fork out US$260 million to cushion the civil service and fork out some more money to enable the GMB to purchase maize to safeguard the countryâ€™s grain reserves.
Some parts of the country experienced poor harvests this season as the nation experienced a mid-season drought that characterised the first months of 2011.