Zimbabwe's budget deficit will increase by nearly $120 million this year due to a maize subsidy, Ripples Advisory calculations show, in a scheme critics of President Robert Mugabe say will be open to abuse and saddle a troubled economy with more debt. Facing an election in 2018, Mugabe says the subsidy will make Zimbabwe self-sufficient in the grain and help struggling farmers.

Mugabe's government announced the scheme last year as part of a 'Command Agriculture' drive, saying it would pay farmers $390 a tonne for maize this harvest to encourage farmers to plant. Nearly 70 percent of Zimbabwe's population is rural-based and survives on agriculture.

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