Fitch rating agency doubts PF 2016 budget

Fitch expects Zambia’s budget deficit to remain elevated due to a rapidly falling currency, an ongoing energy crisis and falling commodity prices, the ratings firm said on Monday.

“The ambitious fiscal consolidation plan in Zambia’s 2016 budget will prove challenging due to its reliance on raising revenue rather than cutting expenditure,” Fitch said.

Zambia’s finance ministry said on Friday it saw the fiscal deficit to narrowing to 3.8 percent of GDP in 2016, from a projected 6.9 percent in 2015, but Fitch said this was unlikely.

Reuters

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