THE Government next year proposes to spend K32.2 trillion out of which 76.6 per cent will be locally sourced.
Presenting the 2013 National Budget to Parliament today, Finance Minister Alexander Chikwanda said that the 2013 budget will aim to deliver real economic results that will be felt by all Zambians.
“The budget proposed for 2013 launches Zambia on a new path of inclusive development and societal transformation, where the benefits of growth are not merely recorded in dry statistics but felt tangibly by all Zambians,” Chikwanda said in his budget speech.
Mr Chikwanda said K24.7 trillion, or 76.6 per cent of the total expenditure would be financed locally while grants from cooperating partners would account for K1.5 trillion.
The remaining K5.6 trillion or 18.4 per cent of the expenditure would be raised through domestic and external loans.
Mr Chikwanda said out of the K32.2 trillion the economic affairs would get the single biggest chunk of K8.9 trillion or about 27.6 per cent followed by the general public services which would get K8.4 trillion or 26.2 per cent of the total budget.
A total of K5.6 trillion has been allocated to the education sector in the 2013 National Budget that was presented. Mr Chikwanda proposed that K5.6 trillion be allocated towards the education sector for the purpose of providing quality education and skills training to children and the youth.
Mr. Chikwanda said that this represents a 15.8 percent increase over the 2012 allocation.
He said the sector has been allocated K393.3 billion for the development of secondary school infrastructure across the country.
The Minister said the move is government’s intention to revamp secondary and tertiary education in order to significantly improve the progression rate of pupils that are being produced from primary schools.
He explained that a further K475.1 billion has been earmarked for operations and expansion of infrastructure in universities, colleges, and trades training institutions.
Mr. Chikwanda added that in addition to the funds allocated to the trades training institutions for training an additional K50 billion to empower the unemployed and vulnerable youth with vocational skills will be given.
Mr. Chikwanda also said that he has allocated sufficient resources to facilitate the net recruitment of not fewer than 5,000 teachers.
The rest of the allocations are: housing and community amenities (K1 trillion), social protection (K892.2 billion), recreation, culture and religion (K252.3 billion) and environmental protection (K74.2 billion).
“Sir, it is as unacceptable as it is unsustainable that in much of the post-independence era recurrent expenditure has eclipsed the development budget.
“Steps have been taken in the recent past to remedy the situation and a major aim of the 2013 National Budget is to further reorient the budget towards increasingly enhanced capital expenditure in a wider scope of sectors,” Mr Chikwanda said.
According to Mr Chikwanda the 2013 National Budget was the beginning of the bold steps towards giving practical effect to the attainment of inclusive economic growth.
To finance the K32.2-trillion budget Mr Chikwanda projects to raise K23.5 trillion or 19.4 per cent of the Gross Domestic Product (GDP) from taxes, K1.2 trillion from non-tax revenues and K1.8 trillion from domestic borrowing.
The government expects to raise K5.6 trillion from foreign grants and financing, out of which K1.5 trillion will be in form of grants and K4.1 foreign financing.
“Mr Speaker, to support the expenditure I have outlined above, Government expects to raise a total of K32.2 trillion in revenues and financing.
“Domestic revenues will account for 76.8 per cent, support from cooperating partners will account for 4.7 per cent and domestic and foreign financing will account for 18.4 per cent,” he said.
Of the total income tax of K12.8 trillion which the government projects to raise during the year, K4.7 trillion will be in form of company income tax while Pay As You Earn (PAYE) will contribute K5 trillion and the mines K1.9 trillion through mineral royalty.
The Value Added Tax (VAT) will account for K6 trillion with K5.5 trillion being from imports and K500 billion from domestic transactions.
Under the customs and excise duty, K2.1 trillion would be from the custom, K2.5 trillion from excise and K659 billion from fuel levy.
Mr Chikwanda said he was confident that the revenue measures would support the policies and strategies to meet the 2013 macroeconomic objectives and those for the medium term.
“These measures aim to foster local value addition, reduce the cost of doing business, encourage savings and investments and streamline the tax incentives and make the tax system more equitable, at the same time generating adequate resources for development,” Mr Chikwanda said.
The government has maintained this year’s real GDP growth target of above seven per cent but reduced the end-year inflation target to not more than six per cent from not more than seven per cent.
Other macroeconomic targets for 2013 include the domestic revenue of at least 20 per cent of GDP, limit the overall fiscal deficit to 4.3 per cent, maintain gross international reserves of at least four months import cover and create 200,000 decent jobs.
Lets go Zambia.Anyway i have to read the whole budget carefully before making an informed opinion.
Mamama….PF fyaume guys. What a mouth watering budget, what a great budget, mmmm PF you are great. You have again given me 200 000 kwacha back in my pocket. PF please stick to this well outlined budget don’t swerve, implement it to the fullest and Zambia shall retain its glory. Don’t just say it but ensure that it is implemented. Ignore those who were born bitter and frustrated but concentrate on delivering. Wapya Munzi guys. I have read the budget from A to Z, very good one indeed.
Can you understand what you hear?
If you were getting K2million you can celebrate about the 200pin otherwise you will be getting far less than that! If you look at the big picture it comes to nothing because of the effect of the power tariff hikes and increase in transport costs…
If only we could implement what is outlined. The problem is how do we expect people who cant run their household budget to stick to such a budget?
pf nafuti nafuti….. HH ati windfall tax..panyo
I still need to read the whole budget carefully so that i make some serious comparisons & see how much & at what rate we are growing expenditure wise
Education! Education! Education! Education!Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education! Education!
This is the same game with different rules,the same song with different lyrics,”been there, done that” we would say in the Hip-Hop world !
Now please,send the money to the Zambian Embassies…we are starving here!
The hip hop world is actually a prime example of evolving ideas by increasing knowledge, looking inward for solutions and generating revenue by seizing opportunity in innovative ways without waiting for handouts. At least that is what it was in its purest form. As Chuck D says today’s hip hop is made in the boardrooms and has lost it’s way :)
Health, education, sanitation – I hope these are the priorities
Well said princess.Each of those feeds the other as theres no health without sanitation and theres no sanitation without education.
10% here, 10% there! Nothing to get excited
Why are we hard working citizens the only one that continuously pay the biggest chunk year in year out. The few workers in the country through P.A.Y.E. are contrbution more money to the treasury that the Mines (through royalties) or companies through corporate tax. This is just wrong. Can the mines also share in this burden please. We are tired on cthe continued drying of our poor pockets. Bring back Windfall tax please and give us some breathing space. We citizens also want to prosper but at this rate, we can never
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Let’s see an improvement in Sport from now on, no more that, age old excuse of Expensive Equipment
Its clear you don’t understand what’s in the budget. Take your misunderstanding to tumfwenko.com
My dream Zambia is coming.
Dont get wet dreams to quickly…………
Read first, judge later
you will never get a better budget than this.EFYO TWALEFWAYA MWEBANTU MWE.Long live PF
Well outlined budget. PF Kibana! Mwalasa, forming a business. Duty free mudala
At face value it appears to be a good budget. For once we see a budget with resources allocated towards areas that could improve the welfare of a good number of Zambians. I wish there was a deliberate policy to channel funds towards research.
That might be made easier if there was a platform that placed local and foreign based Zambian skills in an accessible pool. There does appear to be the talent, brain power and will but it is not in any cohesive joint forum but exists as individual resource, projects, potential areas of development and probably a bunch of reports or journals that begin to tackle issues before being buried and left lying unsupported. Equally relevant is the failure to utilise existing educational facilities, academics, scientists and innovators as potential growth partners. You make a good point.
i advise all zambians including opposition leaders to study the budget carefully to avoid shooting before they aim.
This is one of the worst budgets ever , firstly is this in rebersed currency or what. There is no clear cut in terms of generating cash from windfall tax , why punish your own citizens by using ZRA to get 76 percent of budget support all those tuma corollas duty will go up now. Allocation of funds to health is a joke, is Sata truly serious on this budget.
I’m fed up am told kachepa360 web site is now back let me go and waste my time there
always ranting, we know you man.
Thats what we can do. Botswana is a very stable country because they manage their economy well. When you manage well even the opposition will have trouble picking up points of arguments. You have done landmark already especially on corruption, just stick by that fight, ruthlessly if possible and we shall have new moral ground to manage our economy better and improve our people’s living standards. The doubting Thomas guys will notice it. Some brains have been bottle necked for sometime. We have guys who are honest and committed to Zambia’s development indeed. We shall soon realize this under Sata and PF. This is the best budget so far. Bravo.
Bottle necked brains, ha! Well put.
With the 10% raise in exempt PAYE threshold all workers who earn K2.2M and above will have K50,000 kwacha (50 pin) extra income. Those who get below K2.0M will see NO BENEFIT at all; ZERO Benefit.
what about reduction of vat on wheat and bread-
I will have a share of this budget, I need to sweat though. Thumbs up for such a budget, no doubt of its impact!!!
The Best way to benefit from such a budget is to be active where work and investments are concerned even if work is scarce i.e according to the masses. Otherwise sitting at home and enjoying pleasure won’t help.
Indeed.
Whats 32 trillion Kwacha in dollars?
Homo Habiliz[hh] will still criticise this wonderful bugdet.Ati ba opposition….what a commedy pa zed! Anyway,PF paaaaaaaaaaatali.
ka Good budget + win in Kampala = enjoyable weekend. too bad for Choma boys…ife we shall continue kutoping’a pali long life with HEMCS & the PF….
i ask the relevant authority to fire that UTH DIRECTOR with immediate effect for gross negligence and incompetence. This in regard to the wonderful baby that died as a result of negligence by those over glorified doctors.
Thats institutions such as UTH shud be headed by someone from a different proffession. Kasonka shud be fired over this if the authorities value human life. The medical staff that caused the death of the baby be charged with murder. [-(
Eish,we’re still lagging behind in the region when it comes to raw numbers.That 32tr ZMK budget (the equivalent of $ 6.1 USD) still falls short of Tanzania’s budget of over $8bn U.S and Kenya’s budget of $14bn.These countries don’t have the mineral wealth we have so what is wrong with us that we can’t equal or surpass them?
Both those countries have tapped in to their skill potential a little more effectively. Being landlocked and riddled with mineral resource has its historical drawbacks. I reckon we have been a little preoccupied with figuring out everything but a way to call the shots. That said the brain drain of mining funded, head hunted players has had significant repercussions. A hundred thinkers like you and any of the people up here with harvestable thought processes might just change things but everyone is… otherwise occupied :)
Zambia is landlocked while ports in Tanzania and Kenya gives revenue to the two countries more than the mines in Zambia
Political rhetoric as stated during campaign promises of 90 days. Can any substance come from PF? with “Donchi Kubeba”. PF to fight corruption is another way of saying “Donchi Kebeba”. Leopard marks will always be so.
Hahaha,with almost 20% of budget coming from foreign donors are we truly an independent nation? Just like Uganda and Mozambique its fake independence if you ask me.
And you end there…man have a life.
Every sensible and smart national budget should begin with a vision statement of the country, and national strategic themes to realize the vision, and then how the national budget fits in. I dont see anything close to that in this PF budget. Its not anchored on anything in relation to the bigger picture of where the country is going. Therefore, Its quite a distance from being a sensible and smart budget.
mmmm, man read the whole budget from A to Z, then come and rant.
Good evening
Zambia’s economy is on the move, no doubt. But the taste of the pudding is always in the eating, so it is a good thing the Minister acknowledges that the benefits have to trickle down to the masses.
As usual, criticism will come from alI sides, especially from those who like to sit down and watch things happen but like #22 freelancer has said, it is those that get busy and make things happen that will benefit from the funds. A budget may carry the stimulus for economic growth but the real power of transforming living standards lies in the hands of the citizens themselves. This is what I have observed in European countries.
@ D P, happens in Canada as well, the more you work, the more you are taxed baba…… I think its everywhere….
#30 you sound to be a disorganized person in your heard, the budget presented yesterday has a clear road-map on what has been done so far, where we’re as a country & where we are going. sometimes it is good 2 zip up instead of commenting on things you have little understanding.
HELLO ZAMBIANS!!!PEOPLE ON HERE ARE FORGETTING THAT A BUDGET IS ONLY A PLAN OF ACTION AND NOT WHAT IS ACTUALLY IMPLEMENTED..THEY SAY ACTIONS SPEAK LOUDER THAN WORDS.JUST BECAUSE SOMETHING LOOKS AND SOUNDS GOOD ON PAPER DOESN’T MEAN IT IS….WE HAVE A LOT OF HURDLES IN THE ACTUAL IMPLEMENTATION OF THIS BUDGET THAT THE GOVERNMENT HAVE TO FIX BEFORE ZAMBIANS CAN SEE THE FRUITS OF THEIR LABOR…”CORRUPTION” ASK YOURSELVES WHAT % OF THIS BUDGET WILL ACCOUNT FOR MISMANAGEMENT AND CORRUPTION?????LOOK AT THE STATE OF OUR SCHOOLS,HOSPITALS IF ANY.WE NEED SYSTEMS IN PLACE TO REGULATE “WASTE”.
Well said
Oh dear. This is just a wish list. Recurrent expenditure will continue rising because the man in state house has no handbreak. He will continue creating cost centres through the appointment of cadres. Is there any need to have three permanent secretaries each at home affairs and justice? This is the reason why deficit spending has increased from last years 7.7% under the MMD budget to 23.4% in this years PF government. This is not a good budget.
Budget is just words, words and numbers and number on paper. Implementation is what excites me because from experience things are easily said on paper but when it comes to implementation it’s a different story and usually a sad story.
Well spoken
mmmmmm i think the country is in the right hands under pf ………go pf go..
@27. Enka Rasha. Tanzania has a population of 42m people. And in relative terms a budget of $8bn on a capita basis is smaller than Zambia’s $6.1 bn since Zambia’s population of 13.3 m. Kenya also has a population of 40m people and therefore relatively to Zambia , Kenya’s $14bn budget is smaller than Zambia’s per head.
Well,that may be so but it brings our shortcomings into sharper focus.Tz has fewer minerals and Kenya has only 40% arable land,no minerals and its budget is only 5% foreign financed.Why are we less developed and less diversified economically?
Actually more Zambian budget per capita should mean higher HDI,better infrastructure,higher life expectancy and generally a more developed economy since GRZ has more to invest than either of those two.But,alas we find most of those zambian indicators say otherwise.Try other excuses.
Enka Rasha, you indeed have a problem. Your initial rant was about comparisons of budget figures/amounts of Zambia vis a vis Tanzania and Kenya. You compare $6bn to $8bn and $14bn. Nowhere in your posting did you ask about “how” budgetary monies are utilized “efficiently” to have positive effects on HDI. There’s no need to change goal posts when you come to the realization that you didn’t properly think through your postulation before your fingures hit the keyboard!
Why has the budget decreased from last years $6.6 bn to $6.3 bn this year? What happened to the doubling of mineral royalties from 3% to 6%? Why didn’t this lead to increased government revenues? And if the economy has grown at more than 6% this year why hasn’t it translated to increased revenue? Why do we continue to have deficit spending when the budget has been reduced by $300m from last year? The arithmetic does not add up!
There are budget cuts world over. When did you come back to earth from mars?
@Ed. There are reasons for budget cuts. Greece is bankrupt and highly in debt, thus creditor nations and institutions have demanded that the Greek govt has to cut social expenditure. Can you tell me as to the reasons that have necessitated the reduction in Zambia’s budget? Please hurry up and tell me! I would like to know!
DWYSYWD – Do What You Say You Will Do – That’s what counts. We can propound and extrapolate figures for hours on end but if we cannot walk the talk, then all this comes to nothing other than an academic exercise. What’s more alarming is when part of it is borrowed money because then we end up in a deep hole.
Mining Sector Regulation
61 … the current problems in the management of our mineral resources include the lack of systems to monitor and account for what is produced and exported.
62. It is an immediate economic imperative for Zambia to put in place systems and institutions of governance to reverse this trend.
Solution: Create the Lusaka Mercantile Exchange (LuME) so that no mineral exports leave the country unless they are FOB/CIF Lusaka via a bank issued Letter of Credit such as SBLC, IRDLC, etc. Apart from accurately recording mineral exports this way, we will create new jobs at BOZ to monitor compliance, we will increase GDP automatically by roughly 10% and on top of that increase bank revenues through LC fees. Problem solved!
Well outlined budget bt hey stick to your budget diligent. Sata go
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