Zambia is expected to have a planned deficit of 111.4 million kwacha (GBP73.5 million sterling) and a balance of payment deficit of 96 million kwacha (GBP63 million sterling) this year.
SV Mr Chikwanda, Finance Minister and wife walking towards and enter building (2 shots)
SV Other Ministers arriving
GV Parliament building
GV&CU Ministers leaving Parliament after budget announcement (2 shots)
SV Mr&Mrs Chikwanda leaving building
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Background: Zambia is expected to have a planned deficit of 111.4 million kwacha (GBP73.5 million sterling) and a balance of payment deficit of 96 million kwacha (GBP63 million sterling) this year.
The Minister of Finance and Planning, Mr. Alexander Chikwanda told the Zambian Parliament in Lusaka on Friday (31 January) he framed his budget proposals "against this very sombre background".
Mr. Chikwanda said the cost of importing oil would account for 51 million kwacha (GBP34 million sterling) of the balance of payment deficit.
The Minister increased duties on beer, spirits, cigarettes and petrol. He has, however, spared the man in the street of higher income tax, which remained unchanged. And pensions went up to a new minimum of 15 kwacha (GBP10 sterling).
His total budget for 1975 amounted to 755.5 million kwacha (GBP498.6 million sterling).
Mr. Chikwanda told Parliament that growth had been slow in 1974, with the domestic gross product estimated to have grown by only a little over one per cent -- well below the target of 7.4 per cent.
He added the future would be difficult because, while the price of exports (copper) was declining, that of imports (oil) was rising.
Revenue from copper this year was expected to reach only about 40 per cent of 1974's estimate of 312 million kwacha (206 million sterling).