TAXES
Government has increased the Pay As You Earn, PAYE, exempt threshold from K600, 000.00 to K700, 000.00 and provided further relief to workers through adjusted income tax bands.
Finance and National Planning Minister, Situmbeko Musokotwane, said working earning K700, 000.00 monthly income would be exempted from PAYE while those earning K700, 000.00 and K1, 335, 000.00 would contribute 25 per cent of the earning as PAYE.
He further explained that those earning between K1, 335,001 to K4, 100, 000.00 would pay 30 per cent while those above the K4, 100, 000.00 would pay 35 per cent.
Dr Musokotwane said government’s intention to provide further relief to workers was constrained by the prevailing economic environment.
Government has also in the budget proposed an increase in the tax credit for disabled persons from K600,000.00 to K900, 000.00 per year while the exempt portion for terminal benefits has also been increased from K20 million to K25 million.
Dr. Musokotwane said government has also proposed to increase the allowable pension contribution from K135, 000.00 to K155, 000.00 per month.
He also said government has proposed that income equivalent to the annual exempt income under PAYE be exempt from taxation and that the balance be taxed at a rate of 25 per cent.
AGRICULTURAL SECTOR
Government has allocated the agricultural sector, over One trillion Kwacha in this year’s national budget, representing a 37 per cent increase from last year’s K800 billion.
Finance and National Planning Minister, Situmbeko Musokotwane, said the budgetary provision is meant to help promote growth in the sector.
Dr. Musokotwane said government’s focus is to develop the sector in its efforts of diversifying the economy following the poor performance of the mining sector in view of the decline in Copper prices on the international market last year.
He noted a decline in agriculture sector performance with crop production declining to 7 per cent thereby contributing to the contraction of the sector by 4 per cent.
He attributed the poor performance in agriculture to high cost of inputs, poor livestock management and weaknesses in the Fertilizer Support Programme.
He said that limited access to credit, inputs and extension facilities by farmers coupled with the failure to attract adequate private investment in sector negatively impacted on the performance of the overall agriculture sector.
In an effort to revamp growth in the agriculture sector, government has allocated K435 billion towards Fertilizer Support Programme, a measure meant to enhance farmers’ access to inputs in efforts of securing national food security.
Dr. Musokotwane said government expects the number of beneficiaries for the Fertilizer Support Programme to increase once the measure is implemented during the course of this year.
He indicated government’s concern over the limited impact that the programme has had on increasing agricultural productivity.
He added that in view of the concern, government has initiated a comprehensive review of the programme to improve its effectiveness especially in rural areas.
Dr. Musokotwane said K25.4 billion for the procurement of motorbikes and bicycles and an addition K12.3 billion for the construction and rehabilitation of camp houses for extension workers
He further said K70.7 billion is for livestock farming development, the resources which will also be used to create at least One disease-free livestock zone.
He said government is determined to learn from some neighboring countries that have succeeded in the development of vibrant livestock sector.
He also said K42.4 billion has been allocated towards the development of the Nansanga Farm Block in Serenje, which is expected to be a model of agriculture development in Zambia.
He added that K56.5 billion has been allocated for various irrigation projects, the allocation has been made to reduce small-scale farmers dependence on rain-fed agriculture in view of the unpredictable weather patterns
Government has also allocated K100 billion to the Food Reserve Agency, [FRA], for strategic food reserves and an additional K10 billion for the Food Security Pack as part of the measures to mitigate the high cost of food and ensure household food security.
It has also waved tax on imported Two wheel tractors and accessories, tractors up 60 Horse power, ploughs, harrows, disc harrows, planters, seeders, rippers, Sub-Soilers, cultivators and Pump sets. Others are Treadle pumps, hip pumps,Knapb Sack Sprayers and Suction, Delivery and Falt hoses.
The measure, which is meant to promote growth in agriculture, will cost government an estimated K38.9 billion.
HEALTH SECTOR
Government has allocated about K1.8 trillion to the health sector.
The allocation of K1, 823.4 billion, represents 1.4 percent increase from last year’s allocation of K1, 586.6 billion.
Of the allocation, about K208.6 billion had been allocated towards the procurement of essential drugs and medical supplies.
Dr. Situmbeko Musokotwane has allocated K168.1 billion towards the improvement of infrastructure.
Some of the hospitals to be worked on include samfya, Chadza , Mumbwa, Kapiri Mposhi, Isoka, Shangombo Chongwe , Kaputa and Lumfwanyama .
The Minister said about 1970 health personnel would be recruited at a cost of K25.0 billion while K33.2 billion would be spent on procuring media equipment.
About K170 .7 billion has been channeled for the prevention and treatment of HIV/AIDS , K94.9 for the control and management of malaria and K9.6 billion in the fight against tuberculosis.
TOURISM SECTOR
Government has allocated K77.6 billion to the tourism sector in the 2009 National Budget.
Dr. Situmbeko Musokotwane said government hopes the budgetary allocation would help improve performance in the tourism sector.
Dr. Musokotwane said government has allocated K24 billion towards the rehabilitation of the road from Mbala to Kasaba Bay in an effort to improve access to the Northern Tourism Circuit.
Dr. Musokotwane said K11 billion has been allocated towards the construction of a terminal building at Mbala Airport and rehabilitation of the Kasaba Bay airstrip, while another K10 billion has been allocated towards the preparation of an integrated development plan for the Kasaba Bay tourist area.
He said a further K14.7 billion has been allocated towards the electrification of Kasaba Bay.
He said government hopes to attract more than 12 world class hotels to the area, once the planned infrastructural developments are completed.
Dr. Musokotwane said this when he announced the 2009 national budget under a theme ‘Enhancing growth through competitiveness and diversification.’
The minister said K99 billion has been allocated for rehabilitation of the Zimba/Livingstone Road, which when completed would improve access to the tourist capital.
He said K7.5 billion has been allocated towards the proposed development of a new tourism zone in Livingstone that will have necessary infrastructures for investors to readily establish tourism facilities.
Dr Musokotwane said K59.1 billion has been allocated towards rehabilitation of roads in key national parks of which amount, K36.6 billion will be used for the Chipata-Mfuwe road and K24 billion will be used for the Kafue National Park spinal road.
He said in an effort to promote the marketing of the country and a measure of tourism promotion, government proposes to refund certain expenses incurred in shooting movies.
He said government has proposed a 15 per cent rebate of expenses to filmmakers incurred in shooting movies locally
EDUCATION SECTOR
Government has increased the budgetary allocation to 24 per cent towards education and skills development from K2.1 trillion to K2.6 trillion this year.
The increase in the budgetary allocation is in line with government policy of investing in human capital development in an effort to enhance productivity and contribute to the attainment of a vibrant economy.
Dr. Musokotwane said government will use the resources towards improvement of access to education at all levels.
He said K45 billion has been allocated towards the recruitment of 5, 000 teachers this year in government efforts of improving the teacher pupil ratio and the quality of education in the country.
He said K577.9 billion towards infrastructural development in education sector compared to K368.7 billion last year.
He said K423.3 billion of the total amount will be channeled towards the construction odf basic and high schools, providing an additional 2, 500 classrooms.
He also indicated that K42.8 billion has been allocated in this year’s national budget for educational materials that include books and desks.
Dr Musokotwane said K207.9 billion has been allocated to the three public universities, of which K35 billion has be allocated towards infrastructure development.
He said K5 billion has been allocated towards the transformation of Copperbelt Secondary Teacher Training College and Kwame Nkrumah Teacher Training College into a university and an additional K5 billion for the conversion the dilapidated Mulakupikwa Police Training College in Chinsali district into a teacher training college specialising in sciences.
ENERGY SECTOR
And government has allocated K16.8 billion  to ZESCO for the completion  of the rehabilitation works.
Government has further allocated K88.8 billion to the rural electrification so as to expand the national grid and improve access to power in rural areas.
ZANIS/ENDS/SJK/MKM/ENDS
That’s a good one on health i hope u mean it..VJ should no longer be going to South Africa for treatment..Still more fye chalinkalipa bout the health system in Zambia and how many relatives and friends i have lost becoz of lack of simple medicines,i have declared war on the MMD.I will fight them to the bitter the end.
Ok Ka tubelenge first :-w
Aaah Fyafulisha… but in general it seems to be a genuine one though these peoples’ work always goes invesly proportional to their words… we will be :)] you!!1
What about the common citizen? How much
will go towards improving our standard of living???????????
Opportunity to invest in agriculture in NOW!!!!
Ba musasa mpolo, you have increased PAYE after blowing the money and then you keep saying Chuluba is a thief. The economy won’t improve.
I cant see any difference… transposed figures…
What about real development… Action plan please
Whatever happened last year will thiss year..
I mean i cant see this as change driving
Come on ba L.T.be serious,
Is it (K33.2 billion would be spent on procuring ‘media’ equipment or is it ‘medical’ equipment??)
Glad to hear Malaria is included among those diseases to be tackled…
#4, spot on.. Animal farm mentality continues.. More”ELITES’ to Morningside clinic and Milpark hospital …yet again????..
How can they increase PAYE when people are suffering? Ba f1ka1a sometimes these guys are just so out of touch with the common man that we all seem to be statitics or bar graphs at the Ministry of Finance. Anywho, I love the initiative but please lets protect the middle class.
boring, charges, inconvinience (:|(:|(:|(:|(:|
It seems change in Zedi is just a political song…
or just ABC.. then Zeeeee! (:|8-|8-|
With this new tax system PAYE, my salary reduces even further :((:(( why do I’ve to continue subsidizing the lives of the rural champs who don’t know how to vote?!!:-w
Hi Cutey. LT today is just about the budjet. Booring… :*:*
#13, looks like.., after all its budget time world wide……
Some of us, our families are languishing in Zambia whilst the ‘elite’ get more richer and live life to the full.
Ati udyelana masuku pamutu. :o:o
Iyi budget yena kusabailafye uku..
Ango bwetuka bwetuka..
No tangible action.. :-@:-@3:-o
2009 Budget has come without incentives for blogging, but has zero-rated agricultural equipment in order to boost the sector. It’s time for bloggers to cut on blogging and instead start investing heavily in agriculture. We have this Golden opportunity of duty free agricultural machinery. What an opportunity to mechanize the production system in the land! Bravo GRZ!
its high time we changed our thinking. If we wait for government to improve our standards, then ubepelefye. we need to do it our selves were we are.
Why is it that those earning little are the ones with more children.
LT i think we need one day discuss on child bearing. the way we are going, population has increased so fast but we are still poorer as a nation
Good morning everyone.
People have misunderstood the increase in PAYE.
Govt has not increased the PAYE, they have increase the PAYE exempt threshold meaning if you are earning K600,000, you DO NOT PAY PAYE. The people who will be paying PAYE will start from K700,000 and so GOVT has not increased PAYE but the exempt threshold.
Some bloggers just like to criticize. Lets give credit where it is due. This is a good budget.
Please bana # 9 NGOLO Grow up.Don’t use this forum for your Negativity.The world is full of good things if only you can grow up.Please be Positive next time.You are very intellegent.It is not the Budget and the presenter that will change things in Zambia.It is our altitude that will make mother Zambia beautiful once again.
I hope the allocation of K200 Billion plus will sort out the outstanding problems of the 2 varsties. Other wise the allocation is not enough. Retirees and retrenchees are still owed Billions Kwacha, Napsa, ZRA and other arears. I pity the students, as soon as the dons will go through the Budget line by line and discover that they have nothing in it then you will hear that they have gone on GO SLOW or POLE POLE oR PACHI PACHI then the students will resort to what they know better STONING US THE INNOCENT TAX PAYERS then DR. Sitambuli Mononotwane shall jump with sup budget.Plan ahead properly not Chimbwe No Plan.Airport Head is supposed to be full of GREY MATTER
Ok now, give us our BC!
let districts and pronvices make their little budgets then consolidated into national budget. With so much poverty is is impractical to plan from Lusaka
Especially you guys in Lusaka the Copperbelt you are just crowding the cities doing nothing.The budget especially agriculture is right on the spot. The Government job is to create a coducive environment for the citizens to operate and thus what has been done in the budget. Go out of Lusaka go and do farming. You are just making the city dirty
Look good to me,i just hope the government would walk their talk and not it be just another case of an impressive budget without proper imprementation 😕
You guys in lusaka let me tell you that instead of you buying a vihecle from Japan buy a tractor. Instead of selling whatever you sell at city market in lusaka and making the place dirty go and build a guest house in Mbala/Kasaba bay.These are the areas the government is putting money. Why waste time shouting/honking/attending political rallies/going to the airport to receive politicians. Why? That is not wealth creation. That is madness. Go and create wealth the government has shown you where they will spend the money.
i have a dream,that one day,zambians will learn to speak the truth.the post newspaper indicates that the budget amounts to 15.27 but lusaka times indicates 15.3. now which one is which?????????????? :((:((:((:((:((:((:((
The budget is no budget if its not followed! we should also budget for funerals for the president, vice president and mwaanga’s medical bills because they will be high! some of the so called increases in allocation of funds in the budget are not there if you factor in inflation.
#27 You must have missed class when your friends where learning about decimals or you are completely illiterate mathematically!
Before we can run, we need to crawl, then stand, then run. We each small step that we take, we get stronger. investing in agriculture is the key to food security. This will create jobs and make life better for the common man. Food will continue to reduce in price and increase in variety. investing in education will reduce illiteracy, creating a more educated, productive Zambia!! This year, we secure food and education, next year, we’ll secure roads and infrastructure. Let us plan properly so that we can start and complete projects. One Zambia!
#20 so your point is?
I concur with # 1, UTH and other hospitals are our last line of defence; not some RSA hopsital. Figures are impressive but what to look out for are the funding mechanism, i.e. what proportion of the budget relies on donor funding and how sustainable are the internal funding sources. Furthermore, what proportions of the budget cover the blotted civil service and defence; more should go to health, education and infrastructure development.
Yes most of us have “beef” with MMD as they have failed to live up to our aspirations. If only god can’t annoint us an “Obama” to bring back the virtues of public service. Current scenario is that we owe politicians for leading us,the opposite should hold
I like what they are doing for agriculture, but it is within the framework of ‘laissez faire’ economics. We need more than monetist and fiscal policies. We need real government projects to develop agriculture, and put professional agriculture within the reach of all subsistence farmers to make real progress.
By all means revamp the cooperatives and the NCZ to produce more fertilizer to reduce it’s cost. However, land reform; security of tenure for subsistence farmers; extension services for marketing, sales, price discovery and eduction are crucial.
We need a comprehensive agrarian reform plan. Create jobs by building massive rural infrastructure for irrigation and roads.
Agriculture, education and energy need to be priorities. Zesco needs to be more inventive. We import solar panels from SA and other countries, I don’t see a reason why ZESCO cannot use it’s ingenuity to diversify a little more. A lot of farmers and first time home owners in rural Zambia don’t just jump to electricity so if someone produced low cost solar panels it can make a great change for many people. Zesco also needs to reduce installation costs for new houses to make it possible for more people to install electricity.
MrK you are absolutely right about Agro programs in Zambia.We need an aggressive bottom up restructuring of the agro business. Bbring back cooperatives, deploy agriculture development officers to rural areas to help run cooperatives and make NCZ a viable industry again. In education am pleased with funding but let us stop staffing urban schools and concentrate on rural schools. There kids in rural areas who have been working as untrained teachers, pay for there college and return them to those rural schools. That’s the only way we will stop worrying about sending a young man from Lusaka to go work in Sanfya. It’s not complicated Zambia can do this.
ok.. just make sure that they will makeall this things possible….
bfexlv