Zambia Targets Lowest Budget Gap Since 2011 in Election Year

Zambia plans to reduce its budget deficit to the lowest level since 2011, which is an unusual move in an election year. The government aims to cut the deficit to 5.5% of the gross domestic product (GDP) in 2021, down from an estimated 9.5% in 2020. This would be the smallest budget gap since 2011. The decision to tighten fiscal policy during an election year is a departure from the norm, as governments often increase spending to boost their chances of re-election. However, Zambia's government is facing a challenging economic situation, with high debt levels and the need to address the impact of the COVID-19 pandemic. The move to reduce the budget deficit is part of the government's efforts to restore fiscal sustainability and regain the confidence of investors and international lenders. The success of this strategy will be crucial for Zambia's economic recovery and its ability to address the needs of its citizens in the long run.