By BUUMBA CHIMBULUZAMBIA’S budget deficit is set to narrow to 6.8 percent during this year, with government expenditure falling. This is attributed to cuts in foreign financed infrastructure projects, as well as increasing mining receipts which is set to boost growth in revenue, according to PwC 2020 Zambia Bank and Non-Bank Industry Survey Report.The budget deficit reached an estimated 12.7 percent of Gross Domestic Product (GDP) in 2020. According to the report, an easing of postelection pressures on spending would also help further narrow the budget deficit in 2022 to 4.3 percent of GDP.The report however stated that negotiations with foreign bondholders and the International Monetary Fund (IMF) would be challenging in the short term, with the country remaining more reliant on domestic financing. “The medium-term growth is also highly uncertain and will be dependent on the effectiveness of policy support, the extent of the economic damages, as well as the intensity of the health […]
ZAMBIA’S BUDGET DEFICIT TO NARROW
