ZAMBIA’S domestic revenues and grants are projected to increase to over K18 billion in the last half of this year on the back of enhanced tax enforcement.
According to the 2015 fiscal review in the 2016-18 Medium Term Expenditure Framework (MTEF), the general performance of domestic revenues and grants is expected to improve with receipts projected at K18.6 billion in the second half of this year.
“Total expenditures are projected to rise to K26.2 billion during the second half of the year with higher releases expected to be made towards various infrastructure projects including roads, personal emoluments as well as debt payments.
“The K7.6 billion difference between revenues and grants on one side and expenditure on the other side, will be financed through borrowing,” Government says.
During the first half of the year, Government planned to raise a total of K17.1 billion in revenues and grants but was short to meet the target and only raised K16.1 billion with the total expenditure being K20.9 billion.
The difference was financed from the domestic and foreign markets.
Meanwhile, Government intends to limit borrowing by 5.2 percent of the gross domestic product (GDP) next year as it aspires to maintain a positive and broad based growth trajectory, macroeconomic stability and consolidate the fiscal position.
“The specific objectives will be to limit Government net borrowing to no more than 5.2 percent of GDP in 2016, 2.3 percent in 2017 and 1.5 percent in 2018,” the MTEF paper reads.