Zimbabwe maize subsidy adds $118 million to mounting debt.

Zimbabwe budget deficit will increase by nearly $120 million this year due to a maize subsidy, in a scheme critics of President Robert Mugabe say will be open to abuse and saddle a troubled economy with more debt. Grain Millers Association of Zimbabwe agreed to buy 800,000 tonnes of maize from the state for $194 million this season, or $242.50 a tonne. Govt would lose $147.50 for every tonne it buys from farmers and sells to these private millers, totalling $118 million.