GOVERNMENT projects to spend a total of K53.1 billion this year, a marginal increase of 14 per cent from the 2015 Budget.
It also intends to increase domestic revenue to at least 20.4 per cent of the Gross Domestic Product (GDP) in 2016, while the extra revenue of K5 billion is expected from new non-tax revenue measures.
Think tanks like the Zambia Institute for Policy Analysis Research (ZIPAR) usually contend that Zambia’s fiscal position has constantly faced spending pressures which they say always out-paced revenue generation.
Nevertheless, Government has put several measures anchoring on expenditure support towards consolidation such as, cutting spending across all outlays except general public services which include interest payment on debt.
Health spending, is set to be cut by  six per cent  in 2016 compared to 2015, spending  on the education sector  has been reduced from 20.2 per cent  of the total budget in 2015 to 17.2 per cent in 2016.
This is expected to help reduce the budget deficit from 6.9 per cent to 3.8 per cent of GDP in 2016.
Some of the macro-economic objectives as promulgated in Parliament by Finance Minister Alexander Chikwanda are to achieve real GDP growth rate of five per cent compared to 4.6 per cent in 2015.
The target of international reserves of not less than four months of import cover will be maintained in 2016.
Not more than 7.7-per cent was projected for inflation, but given the fact that it ended 2015 with a historical double digit of 21.1 per cent as announced by the Central Statistics Office last week, it is highly unlikely that the target will be met.
In view of the current economic situation, compounded by low global commodity prices and the energy crisis, Mr Chikwanda envisaged
Government’s resolve to speed up diversification of the economy towards agriculture, agro-processing, manufacturing, tourism and energy.
The agriculture sector saw a comparatively unfavourable performance in the 2014/2015 farming season due to low rainfall and overdependence on rain-fed maize production.
It is encouraging that Government in the 2016 Budget has put measures to increase productivity in the agriculture sector regardless of the weather patterns.
These measures will include expediting irrigation which is expected to bring a further 5,000 hectares under this scheme in the next 12 months thereby bringing the area under irrigation over the last four years to 22,500 hectares.
Others will be promoting agricultural diversification through  implementation of the e-voucher system and increasing the proportion of grain and marketing to be undertaken by cooperatives.
In the energy sector, key measures will be swift implementation of the  150-Megawatts (MW) Kalungwishi hydro power station and completion of the long awaited Maamba Collieries coal-fired power plant which has the initial capacity of 300 MW.
The Itezhi Tezhi 120 MW hydro power plant is anticipated to be on stream this year, as well as the up-rating of various mini hydro power plants.
In the petroleum subsector, the Government is expected to maintain a cost-reflective pricing system and ensure stability in the supply of petroleum products in the country.
A number of changes have been made to custom and exercise duties to encourage local value chain augmentation and spur economic growth.
Stakeholders in real estate are expected to benefit from the reduced property transfer tax on land and shares which has dropped from 10 per cent in 2015 to five per cent this year.
Consumers of clear beer in 2016 will be looking at reduced prices because the excise duty which was at 60 per cent in 2015 has been adjusted downwards to 40 per cent.
As for Pay-As-You –Earn (PAYE) tax payment, the exempt rate will remain unchanged at K3, 000.
Changes include the removal of Value Added Tax (VAT) on non-life insurance products by introducing a three per cent levy on insurance premiums.
Mineral royalty for both open cast and underground mining has been maintained as revised in July 2015, at nine and six per cent respectively.
Fiscal cash registers that border on Tax-Online System will replace cash registers and that such devices will be mandatory for all VAT registered suppliers.
The zero-rating of exports for tourists has been replaced by a Tourism Refund Scheme.
Automated System for Customs Data (ASYCUDA) fee which is paid on entry of goods has been increased to K325 from K125, while five per cent exercise duty for pitch coke and 15 per cent for petroleum coke has been removed.
Duty rate on green house as well as roses and seedlings which was at 15 and five per cent respectively, has been removed while changes were made to suspend duty on transmission apparatus for television and radio for the period of two years from January 1, 2016.
The leather industry will have a great relief as duty for wattle extract and chrome powder the substances used in leather production which were at five and 25 per cent, has been removed to enhance the competiveness of the leather industry.
Smokers are expected to pay more for cigarettes because duty rates have increased to K200 per 1000 sticks, compared to K90 in 2015.
This was done to amend the valuation used to assess excise duty on snuff, pipe, tobacco, cigarette tobacco and cigars manufactured in the country.
To increase value addition to wood products, 40 per cent export duty has been introduced for unprocessed wood while semi-processed wood is at 20 per cent.
Specific customs duties for refined oils have been increased from K2.20 to K4 per litre with exercise duties for plastic carrier bags increasing from 10 to 20 per cent.
Custom duty for motor vehicles has been pegged at 30 per cent with exception of buses, trucks, ambulances, prison vans and funeral hearses.
The minimum custom duty for vehicles has now been adjusted upwards to K6, 000 from K2, 000 in 2015.
In addition, a K2, 000 surcharges on motor vehicles older than five years has been imposed as a way of achieving a standard method for second-hand vehicles to ensure consistency.
Therefore it is expected that players in the economy will quickly adjust their operations in line with the budget provisions most of which became effective on January 1, 2016.