The Zambia Institute for Policy Analysis and Research (ZIPAR) says Zambia is capable of raising at least US$1 billion in domestic revenue in 2017, with minimal adverse effects.
And ZIPAR says figures show that by June 2017, Government borrowed K6.6 billion from the domestic market, an increase of 1,519 percent while on the other hand, foreign financing was 80% below budget.
Speaking during a 2017 mid-year budget review in Lusaka, ZIPAR Research Fellow Shebo Nalishebo says there have been concerns that the increased domestic borrowing is likely to further crowd out private sector investment.
He says in the 2017 Budget Speech, Government was to borrow no more than K3.8 billion from the domestic market or below 2% of Gross Domestic Product (GDP), but that effective 29th November, 2016, Government announced the upward adjustment of tender sizes for Government Securities and the increase in frequency for government bond auctions, signalling increased domestic borrowing.
And in his analysis on the mining tax regime, Mr Nalishebo said copper production is expected to rise to 850, 000 tonnes in 2017 from 770,597 tonnes in 2016, an indication that government has perhaps created a win-win situation for itself and the mining companies.
Speaking at the same event, Economics Association of Zambia (EAZ) Representative Twivwa Siwale says the macro economic objectives set in the 2017 national budget are strong and are appropriate in restoring Zambia’s economy.
And Economist Dr. Oswald Mungule, who is also a Lecturer at the University of Zambia, says two out of the seven objectives set in the 2017 national budget on inflation and the GDP growth rates have been achieved.