In about half of LIDCs, the overall fiscal deficit will
decline or stabilize in 2014, mostly because of spending
restraint. Delays or cuts in public investment are
forecast in Haiti and Zambia, coupled with wage bill
freezes in Lao P.D.R. In Chad, improvements come from
higher oil revenues as new oil projects are coming on
stream and from efforts in expenditure rationalization;
in Burkina Faso and Honduras, they reflect dividends
from revenue administration and tax policy reforms. In
the largest economy of this group, Nigeria, the overall
balance is expected to improve slightly, after a sharp
deterioration in 2013, because of reduced current spending
and higher non-oil revenues; however, oil revenues
have so far been below expectations owing to lower
production. In Ghana, fiscal adjustment is proceeding at
a slower pace than budgeted, due to delays in broadening
VAT coverage, in adjusting utility tariffs, and in
implementing an ad valorem tax on petroleum products.