[caption id="attachment_162847" align="alignnone" width="300"] Zimbabwe has over the years continued to overspend, with last year’s deficit outturn standing at $1,7 billion, representing 9,4 percent of gross domestic product (GDP).[/caption] THE International Monetary Fund has warned government over civil service salary increases, citing fiscal consolidation challenges amid a widening budget deficit. Fiscal deficits have continued to haunt government with authorities targeting a $672 million deficit. This could, however, widen following recent hikes in civil servants salaries. “Fiscal consolidation is a critical element for stabilising the economy, since persistent large deficits crowd out private sector investment, exacerbate external imbalances, and further undermine confidence in the currency regime. “Given the tight fiscal space, it is important to prioritise and rationalise all spending, ensuring…