Budget deficit of K1.9 bil projected

THE Government is projecting a budget deficit of less than K1.9 billion – slightly lower than the expected 2018 Mid-Year Economic Fiscal Outlook outcome of K2 billion.
Deputy Prime Minister and Treasurer Charles Abel while presenting the 2019 budget strategy paper said the proposed reduced budget deficit in 2019, although modest, was expected to further ease the pressure on the domestic debt market for funds. He said the gradual restricting of the debt portfolio towards external debt in the latter part of 2017 and over 2018 to date had to ease the pressure.
“However, these efforts will need to be maintained over the remainder of 2018 and in 2019,” he said.
As part of the measures to mitigate these risks, the 2018 budget required the Government to source external funding from development partners at concessional rates in the form of budget support in 2018.