Zambia promises economic rebalance in 2017 budget

The Zambian government on Friday unveiled its 2017 national budget of 6.5 billion U.S. dollars, while promising an economic and financial rebalance in the face of an economic meltdown.

The Zambian economy has suffered a meltdown with the economic growth for 2016 projected at 3 percent, the lowest since 1998.

Minister of Finance Felix Mutati said while presenting the budget to parliament that the government would ensure that the finances go towards supporting key sectors of the economy.

"With this budget, government will rebalance the economic and financial position of our country, thus setting conditions for sustained economic growth," he said.

He said the gravity of the state of the economy requires the government to put in place bold measures to stabilize and grow the economy.

He acknowledged that the economy was facing turbulent times due to external and internal pressures, adding that turning the economy around will require making hard choices and implementing difficult reforms

According to him, implementing the 2017 budget will be challenging due to weak global economic growth while the country's low water levels will continue to hamper electricity generation.

Among fiscal and policies to be implemented under its economic recovery program, the government intends to restrict new capital projects and major equipment procurements until ongoing projects are completed, to implement a phased removal of electricity subsidies and restrict new public sector recruitment to only the health and education sectors.