GOVERNMENT has released K1.6 billion to various ministries and statutory agencies in an effort to stay on course with moving public expenditure from predominantly consumption to capital in order to reduce poverty.
The Treasury released these funds between June 30 and July 4, this year so as to stay on course with realignment of public expenditure from predominantly consumption to capital, poverty reduction and employment creation activities.
In a statement yesterday, Ministry of Finance head of media and public relations Chileshe Kandeta said some of the ministries, provinces, and other spending statutory agencies that received funding are Local Government and Housing, Education, Health, Agriculture and Cooperatives, Home Affairs, Chiefs and Traditional Affairs, Defence, and Foreign Affairs.
Others are the Judiciary, Electoral Commission of Zambia, National Pension Scheme Authority (NAPSA), Public Service Pensions Fund, Public Service Commission, the Zambia National Building Society (ZNBS), and various provinces.
The Treasury released K342.8 million for foreign currency purchases, of which K307 million went towards repayment of arrears owed to PTA Bank for fuel purchases, K35 million was shipped to Zambia’s foreign missions for staff emoluments, and K1.8 million was a scheduled external debt amortisation.
These transactions, Mr Kandeta said, had a tow on the exchange rate, however, forex demand is expected to taper-off this week.
Government recapitalised the ZNBS with K165 million from proceeds of the 1 billion sovereign bond.
Mr Kandeta said the funds had significantly improved the resource base for ZNBS.
It was anticipated, he said, that there would be improved onward lending to the public as mortgages in form of home purchase loans, construction loans, home improvement loans, and loans under employer assisted schemes.
The Treasury also released K378 million to the Ministry of Education of which K240 million is for school infrastructure projects in various provinces while K10 million is an allocation for student tuition fees.
The Ministry of Health got K152.6 million for infrastructural projects, of which K95 million is targeted at capital projects and procurement of medical equipment for modernisation of health service delivery in Zambia. The Ministry of Local Government and Housing received K43 million, of which K2 million was appropriated for construction of markets and bus stops.
Mr Kandeta said the Ministry of Defence received K30 million for purchase of earth moving equipment, an important step in ensuring that the local capacity of the infrastructure sector is enhanced and so the Ministry of Finance was optimistic of delivery timeliness and better quality infrastructure works.
For scheduled construction of chiefs palaces, the Ministry of Chiefs and Traditional Affairs received K4 million towards ongoing works.
NAPSA was given K25.3 million while the Public Service Pensions Fund received K21.7 million as employers share towards June, 2014 pension contributions.
The Electoral Commission of Zambia was given K5 million for the forthcoming by-elections.
The Ministry of Agriculture and Cooperatives got K60 million for crop purchases affirming Government’s commitment to the Food Reserve Agency paying farmers on time to accelerate development and poverty reduction at grass-root level.
Meanwhile, Secretary to the Treasury Fredson Yamba has appealed for timely implementation of the programmes which have benefitted from the K1.6 billion funding, not only to maintain the positive growth of the economy, but also to ensure that the implementing agencies take advantage of rain-free weather conditions.
“At all levels of governance, it is also important that everyone familiarises themselves with the statutes, regulations and guidelines on management and administration of public funds to ensure that the intended beneficiaries are touched by these resource outlays, in a timely, positive and sustainable manner.
“We must not wait for the next rains to catch-up, therefore, the Treasury will not hesitate to re-call idle funds being kept by some ministries in commercial bank accounts, for re-allocation to needy programmes,” he said.
Mr Yamba said funds should be utilized for the intended purposes so that the results would be beneficial to Zambians and reassuring to the international community about the Government’s ability to transform the Zambian economy into one of the best in Africa.
Twalya again …..
Another one leg reporting! Why don’t we get similar statements of application of these funds at the end of the grant period? The Ministry has opined this to be a good initiative to disclose funds disbursement, but is, in my view incomplete information, if we don’t reports of, for example, which funds were recalled and to where – PF or which other needy sectors? Chileshe, please consider.
Just how much has Sata and his PF wasted on by-elections? Including the cost of all the Court cases?
Can Zambia afford to waste such huge sums of money just to keep this useless and corrupt Government in power???????
When they cannot even deliver the NEW CONSTITUTION the PROMISED US????
Wasting…. ? Ministries need money to function,It is the corrupt civil servants to blame.