Zimbabwe's Fiscal Indiscipline Leads to Unsustainable Debt and Economic Imbalances
Zimbabwe has struggled with poor fiscal performance, leading to economic imbalances. The study looked at how fiscal discipline and budget processes are related in the country. They found that increasing fiscal indiscipline in Zimbabwe results in bigger deficits, more borrowing from the domestic market, and unsustainable debt. This indiscipline is caused by weak budget systems, political factors, and economic sanctions. To improve fiscal discipline, Zimbabwe needs to strengthen its budget frameworks, address sanctions, and set clear fiscal targets. It's also important to save money during good times to help during tough times like droughts or pandemics.