Fiscal Policy and Economic Growth in Zambia

Abstract

This study examines the evolution and effectiveness of Zambia's fiscal policy in promoting economic growth and stability. It identifies key trends and challenges through a comprehensive analysis of fiscal policies and economic indicators from 2012 to 2022, including budget deficits, GDP growth, public debt, and sectoral contributions. Despite efforts to diversify and reform fiscal practices, Zambia faces persistent hurdles such as high external debt and dependence on copper exports. The findings underscore the importance of a balanced fiscal approach that includes targeted social spending, prudent debt management, and sectoral diversification to achieve sustainable economic development. In addition, effective coordination between fiscal and monetary authorities, transparency in governance, and strategic investments in key sectors are essential to address these challenges and promote long-term prosperity in Zambia.