By BUUMBA CHIMBULUZAMBIA’S 2020 national budget has reduced in real terms by 15.7 percent following the steady increase of the inflation rate.Annual inflation rate for April 2020 shot up to 15.7 percent.In January this year, inflation stood at 12.5 percent but moved further up in February to 13.9 per cent before getting to 14.0 per cent in March.As for the Government, increased inflation rate means the size of the 2020 budget has reduced in real terms by 15.7 percent, says Bridges Limited Managing Consultant, Chibamba Kanyama.Zambia’s 2020 approved national budget stands at K106.0 billion.Mr Kanyama indicated that whereas emoluments could remain the same as projected in the budget provided there were no upward salary adjustments, the Government would have challenges servicing its external debts.Zambia’s external debt currently stands at US$11.2 billion while domestic debt is around K26.2 billion, excluding Value Added Tax arrears.“The debt servicing challenges are worsened by the weak Kwacha against other currencies.“Government […]
National budget shrinks
