Notably, fiscal performance has been broadly in line with expectations although there was been need to finance the purchase of the maize surplus. The mission also noted that the Bank of Zambia managed monetary policy well with a view to reducing inflation whilst at the same time maintaining conditions to facilitate economic growth. Economic prospects remain favourable, with growth projected to remain strong in 2010. In addition, the 2011 budget is consistent with the maintenance of sound macroeconomic policies. Furthermore, envisaged revenue enhancement which stems from new tax policy measures and administrative improvements, is appropriately ambitious whilst the expenditure mix shifts towards capital and social spending. Total disbursed poverty reduction budget support (PRBS) in the third quarter of 2010 amounted to US $ million from the World Bank. A total of US $ million mining tax revenue was received from First Quantum Mining Plc while the Bank of Zambia foreign exchange purchases from the market amounted to US $ million. Against these inflows were payments to PTA Bank (US $ million) for oil procurement and debt service payments (US $ million). Preliminary information showed that the Net Domestic Assets (NDA) of the Bank of Zambia, the Net Domestic Financing (NDF) of Government and the Unencumbered International Reserves (UIR) quantitative performance criteria under the Extended Credit Facility (ECF) arrangement were observed as at end-September 2010. Further, all structural benchmarks were generally on track. National budget 2011 The Minister of Finance and National Planning announced the 2011 National Budget on October 8, 2010.

8  BIS Review 148/2010  During the quarter under review, production of clear beer by the monitored company increased by 26.7% to 223,607 hectolitres from 176,515 hectolitres the previous quarter Further, this output was 45.9% higher than the 153,220 hectolitres produced in the corresponding quarter of 2009. Output of soft drinks by the monitored company rose by 1.8% to 127,244.0 hectolitres from 124,944.0 hectolitres produced in the previous quarter. Moreover, this output level was 38.3% higher than 91,968.0 hectolitres produced in the corresponding quarter of 2009. Production of milk by the monitored company during the quarter under review rose by 4.2% to 7,830,878 litres from 7,510,227 litres produced in the second quarter of this year. However, this output was 1.2% lower than 7,924,054.0 litres of milk produced during the corresponding quarter of 2009. Tourism During the quarter under review, international arrivals at the country’s four international airports 8 were 124,244 passengers compared with 105,163 passengers in the second quarter of 2010. This was 20.7% higher than 102,918 passengers recorded during the same quarter in 2009. Livingstone and Mfuwe international airports, which are the major tourist destinations, accounted for 21,272 passengers and 241 passengers compared with 18,180 passengers and 269 passengers in the previous quarter, respectively. During the third quarter of 2010, tourist entries into the country’s national parks 9 were 25,244 compared with 13,737 in the previous quarter. Nevertheless, this was lower than 26,720 in the corresponding quarter of 2009.