The Honorable Minister of Finance and Development Planning, Mr O K Matambo presented the 2016/17 Budget Proposals to the National Assembly on the 1st of February 2016.
The 2016 / 17 budget which coincides with the end of the 10th National Development Plan (NDP10) is also a transitional budget from Vision 2016 to Vision 2036.
The budget allocations address the following key thematic areas:
§ Investing in infrastructure development;
§ Creating employment opportunities;
§ Strengthening human capital;
§ Enhancing national security; and
§ Strengthening local governance.
Budget speech highlights
§ The domestic growth rate for 2015 has been revised downwards from 2.6% to 1%.
§ Growth rates for 2016 and 2017 are forecast at 4.2% and 4.3%, respectively.
§ Actual budget surplus for 2014/15 was P5.34 billion compared to the estimated revised budget surplus of P280.83 million.
§ The 2015/16 revised budget deficit of P4.2 billion compared to the initial estimated surplus of P1.23 billion.
§ Projected 2016/17 budget deficit is estimated at P6.05 billion representing 3.8% of GDP.
§ Foreign exchange reserves as at 31 December 2015 were P84.9 billion (representing 19 months import cover) compared to P79 billion in December 2014.
§ Year-on-year inflation rate was 3.1% in December 2015 compared to 3.8 % in December 2014.