The Ministry of Finance has released a treasury brief on the January to May Budget performance.Below is a summary
Total Revenue collected during this period – KR 10 billion
Total Expenditure during this period – KR 12.8billion
How the money was spent
41.5% – Debt service and payment of salaries
- Payment of retirees,
- construction and rehabilitation of road and rail infrastructure,
- electricity distribution,
- credit to Small and Medium Enterprises
Approved Projected Government spending for facilitation of various programmes and activities- K2.63 billion
By end of April K2.8 billion was funded, representing 7.3 Percent above target.The higher than programmed releases in April were occasioned by expenditure pressures eg. oil procurement
K847.2 million – salaries, wages and emoluments for constitutional office holders
K120.3 million – domestic debt service related to Government bonds and Treasury Bills,
K100.9 million – on external debt.
K1.75 billion – operations and programmes in Ministries, Provinces and other Spending Agencies
K164.20 million -road construction and maintenance
K48 million-Constituency Development Fund (CDF)
K18 million – compensation and awards
K6 million -drafting of the Zambian Constitution.
below are the unbudgeted for activities in April 2013.
K652.56 million -facilitating payments for fuel procurement,
K85.44 million – UNWTO capital projects
K26.3 million – seed suppliers
K6.24 million- shortfall at ZAWA
Revenue KR1.87 billion (4.8% above target)
KR838.9 million -payment of salaries and wages
KR111.16 million -domestic debt
KR998.9 million- operations and programmes in Ministries, Provinces and other Spending Agencies.
KR330.9 million – transfers to Grant Aided Institutions such as the Zambia Revenue Authority, Road Agencies and Universities.
Full Press Statement
TREASURY BRIEF ON JANUARY TO MAY BUDGET PERFORMANCE
Lusaka, Tuesday, 25th June, 2013. The Government has raised KR10 billion in terms of tax, non-tax, and grant revenue for the period January to May 2013, while expenditure for the same period totaled KR12.8 billion.
Speaking on issuance of the latest treasury information brief, Secretary to the Treasury Fredson Yamba said the difference between revenue and expenditure was bridged by domestic borrowing through Government bonds and treasury bills, within the levels approved by Parliament for the 2013 budget.
“This outturn, against an approved budget of KR32.2 billion, represented an execution rate of 41.5 percent by end May 2013,” he said.
Of the releases made over the period, 42 percent went toward facilitating statutory and contractual obligations such as debt service and the payment of salaries and wages in order to facilitate service delivery. The balance of the releases, or 58.5 percent, enabled the provision of goods and services through the various Government departments. These included KR257 billion which went toward payments to retirees under the Public Service Pension Fund, KR1.6 billion for the construction and rehabilitation of road and rail infrastructure, KR365.8 billion for electricity distribution and KR106 billion for the facilitation of affordable credit to Small and Medium Enterprises (SME’s).
Mr. Yamba has said the performance of the 2013 budget has been impressive, dispelling rumours that it has degenerated into an over-run.
“From January to May 2013, Government only spent KR12.8 billion from the KR32.2 billion budget of which, first quarter [January to March] expenditure amounted to KR8.1 billion and in the last two months, an additional KR4.75 billion has been spent, how then can there be an over-run,” wondered Mr. Yamba.
He also stated that Government expected to raise KR2.55 billion from taxes and non-taxes in April 2013 but receipts amounted to K2.61 billion due to higher collections from Pay As You Earn (PAYE) and trade taxes. Revenues and grants collected in May amounted to KR2.1 billion and were above the projected target by KR131 million.
Mr. Yamba noted that the treasury faced timing challenges in terms of revenue inflows and expenditure demands towards the end of the first quarter and the beginning of the current quarter, particularly in facilitating the UNWTO activities and the funding requirements for the Farmer Input Support Programme.
The Government projected to spend K2.63 billion to facilitate various programmes and activities approved in the 2013 budget, but as at end April, a total of K2.8 billion was funded, representing 7.3 Percent above target. The higher than programmed releases in April were occasioned by expenditure pressures, particularly for oil procurement. Under constitutional and statutory expenditure, K847.2 million was spent on payment of salaries, wages and emoluments for constitutional office holders in April, 2013. K120.3 million was spent on domestic debt service related to Government bonds and Treasury Bills, while K100.9 million went towards external debt.
K1.75 billion was spent on operations and programmes in Ministries, Provinces and other Spending Agencies (MPSA’s) of which K51.4 million was allocated to pensions. Other notable expenditure in April included K164.20 million for road construction and maintenance, K48 million for the Constituency Development Fund (CDF), K18 million for compensation and awards, and K6 million for drafting of the Zambian Constitution. Incidentally, the K20 million budgeted in 2013 for drafting the constitution has been exhausted.
The Treasury also facilitated several unbudgeted for activities during the month of April 2013. These include K652.56 million to facilitate payments for fuel procurement, K85.44 million for the UNWTO capital projects and K26.3 million for seed suppliers arising from the re-planting exercise necessitated by the army worm attack in December 2012, and K6.24 million to cater for the shortfall for ZAWA.
The Secretary to the Treasury has said the domestic revenues in May 2013 collected were above the programmed figure of KR1.89 billion by KR149 million or 7.7 Percent.
“Of these collections, tax revenue amounted to KR1.96 billion while non-tax revenue was KR131.5 million respectively. Receipts from Cooperating Partners coming through the Treasury amounted to KR95 million,” he said.
Government projected a total of KR1.87 billion to be collected as tax revenue during the month of May, 2013 but the collections were above target by 4.8 Percent. This was mainly due to good performance under trade taxes, corporate income tax and excise duties. Total income collections came to KR709.4 million, slightly below target by about 0.2 Percent due to under collection on PAYE. Trade taxes where above target by 27 Percent and excise duties were above target by 13 Percent.
At KR131.5 million, non-tax revenue collections for the month of May were above the target of KR71.2 million by KR59.5 million or 84%. Only KR1.95 billion was released representing 19.9 Percent below the projected figure of KR2.43 billion. The lower than programmed expenditure was consistent with the revenue levels.
Under constitutional and statutory expenditure, a total of KR838.9 million was spent on payment of salaries and wages including other salary related emoluments for public service workers as well as emoluments for constitutional office holders. In terms of debt service payments, KR111.16 million was spent on domestic debt, that is, Government bonds and Treasury Bills. No releases were made towards external debt as there was no requirement to do so.
Releases for operation and development programmes coordinated by Ministries, Provinces and other Spending Agencies amounted to KR998.9 million. KR330.9 million was spent on transfers to Grant Aided Institutions such as the Zambia Revenue Authority, Road Agencies and Universities.
“In particular, it should be noted that approximately 60 percent of the funds in the 2013 budget have been allocated to public service delivery especially in the areas of health, water and sanitation and education; the facilitation of service delivery at local government level; enhancement of productivity in the agriculture, tourism and manufacturing sectors; and provision of essential infrastructure such as roads and energy in order support growth in the focus areas,” he said.
“I reiterate the Presidents guidance to continue focusing our budget execution on facilitating accelerated and sustained economic growth that translates into tangible realities for our people such as generation of sufficient and stable jobs, a redistribution of income and opportunities in favour of the poor, access to basic services and a general improvement in the standards of living,” said Mr. Yamba.
In implementing the budget, the Government has remained focused at ensuring that the overall objectives of the budget are maintained. This, it should be appreciated, is in the best interest of both the people, who are the key stakeholders, and the Government, whose existence is for the overall benefit of the people.
“For the month of June, a total of KR2.56 billion is expected to be collected in revenues and grants while expenditure is estimated at KR2.41 billion. Key expenditure items for the month will include releases towards UNWTO activities, Farmer Input Support Programme, Procurement of Strategic Food Reserves and the Pensions Fund,” disclosed the Secretary to the Treasury.
In terms of outlook, the Government projects to remain on course with the execution of the 2013 budget as collections have been projected to over perform by end of year. The projected higher collections, in addition, to the funds set aside under the contingency vote, are expected to cover, among other requirements, the higher wage adjustment for public service workers.
Mr. Yamba also pledged that in order to guarantee the execution of programmes and activities, the Treasury will implement the Presidents directive of ensuring that programme implementation reports are submitted by Ministries, Provinces and other Spending Agencies (MPSA’s) prior to receiving subsequent funding.
Complimentary to the foregoing, the Ministry will intensify the issuance of treasury information briefs in order to assist the public in monitoring and evaluating the implementation of the budget in a pragmatic manner.
Public Relations Officer
Ministry of Finance