K1.9bil to maintain deficit at 2.5pc gross domestic product

THE 2018 Budget of K14.7 billion has a financing requirement of K1.9 billion which will maintain the deficit at 2.5 per cent of gross domestic product.
Treasurer Charles Abel said the budget comprised K10 billion in operational expenditure and K4.6 billion in capital expenditure.
“Compared to the 2017 supplementary budget estimates, the budget envelope is projected to increase by K1.8 billion or 14.5 per cent,” he said.
“Some of the increase in expenditure is being allocated to the major task of clearing arrears and therefore will not required to be sustained over the subsequent projection period.”
Abel said total income including grants in the 2018 Budget was expected to be K12.7 billion.
“With total expenses and capital expenditure appropriations set at K14.7 billion, this results in a financing requirement of K1.9 billion, which will maintain the deficit at 2.5 per cent of GDP,” he said.
“This is the same rate as in the 2017 Supplementary and 2017 Budget.”
Abel said importantly, within the expenditure envelope, expenditure on personnel emoluments had been reduced by 3.2 per cent and grants reduced by 16.7 per cent.
“These reductions have been more than offset by a modest increase in goods and services appropriations, up by 5.2 per cent, public debt interest up by 14.4 per cent and capital expenditure up by 59 per cent.”