Diamond slump halves economic growth forecast

The projected budget deficit is further exacerbated by an increase in government expenditure for the year due to public sector salary adjustments as well as cost associated with drought relief measures.

A 2016-2017 Budget Strategy Paper (BSP) released by the finance ministry this week, estimates the economy to grow by 2.6 percent while the budget balance is now seen posting a deficit of P4.03 billion or 2.6 percent of GDP. In February, finance minister Kenneth Matambo announced a growth target of 4.9 percent for 2015 while the budget was seen posting a surplus of P1.23 billion or 0.8 percent of GDP.