25. Metal exports receipts increased by about 76.8 per cent, to US$ 535.1 million in the first half of 2004, from US$ 302.7 million in the same period in 2003. This favourable increase was attributed to increased earnings in both copper and cobalt sales. 26. Non-metal export earnings increased by 22.2 per cent to US$ 228.6 million in the first half of 2004, from US$ 187.0 million during the same period in 2003. 27. The value of imports during the first half of 2004 increased by 28 per cent to US$ 972.9 million, from US$ 759.9 million during the same period in 2003. The major items responsible for the increase in value of imports were nuclear reactors and equipment, machinery, iron and steel, plastic and rubber, and paper product. 28. The domestic budget deficit widened to 5.1 per cent of GDP in 2003 from 4.1 per cent in 2002. This was due to higher than expected expenditures such as increased civil service personal emoluments as well as retrenchment packages paid to former Roan Antelope Mining Corporation of Zambia (RAMCOZ) employees. The widening budget deficit destabilised the macroeconomic environment as domestic borrowing rose sharply. This contributed to the continued prevailing high interest rates and the non-conclusion of a new economic programme with the International Monetary Fund (IMF) under the Poverty Reduction and Growth Facility (PRGF). 29. By the end of June 2004, the domestic budget deficit was estimated at K376.5 billion, 2.2 per cent of GDP. 31