Thursday, March 28, 2024

Treasury releases K4.32 Billion to step up the development drive

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Ministry of Finance Public Relations Officer Chileshe Kandeta (L)
Ministry of Finance Public Relations Officer Chileshe Kandeta (L)

The Treasury has released K4.32 Billion to step up the development drive and infuse a positive trajectory in the implementation of Governments poverty reduction and job-creation programmes.

As at 31st January 2015, the Treasury raised K2.75 Billion in terms of revenues and grants, while releases to Ministries Provinces and Other Spending Agencies [MPSA’s] amounted to K4.32 Billion. The difference between revenue and expenditure was bridged through programmed financing and Project Financing from Cooperating Partners.

REVENUE PERFORMANCE: Projected revenue and grants receipts for January 2015 were K2.5 Billion, however, an amount of K2.75 Billion was received, reflecting an over performance of 10.27 percent on this parameter. Total domestic revenues consisting of tax and non-tax revenue amounted to K2.74 Billion, of which tax revenues amounted to K2.47 Billion while non-tax revenues totaled K274.55 Million.

EXPENDITURE PERFORMANCE: The K4.32 Billion released by the Treasury for development programmes & governmental operations was above target by 16 percent. The released funds also went towards constitutional and statutory expenditure such as salaries and debt service.

Releases to MPSA’s for developmental programmes and grants amounted to K2.52 Billion. This outturn represented an over performance of 34.6 percent above the target of K1.87 Billion. Of the total releases to MPSA’s in January 2015, notable expenditure included K146.25 Million for the Kafue Bulk Water Supply Project, K43 Million grants to hospitals, K15.77 Million for bursaries, and K100 Million for the Farmer Input Support Programme [FISP]. In addition, K319 Million was released to clear all outstanding payments to eligible farmers for the 2013/2014 Harvest.

The Treasury gave the Public Service Pensions Fund [PSPF] K117.59 Million to facilitate the payment of benefits to retired public service workers, while the Ministry of Community Development Mother and Child Health received K12.5 Million for the Social Cash Transfer Programme. This is consistent with the Government’s desire to stimulate growth and create jobs through high impact socio-economic developmental programmes. Developmental programmes related to electrification, water and sanitation, and railways [Tazara] also received at total of K808 Million.

Under constitutional and statutory expenditures, a total of K1.53 Billion was spent on the payment of salaries, wages and salary related emoluments for public service workers and constitutional office holders. Debt service and amortization payments totalled K302 Million of which K141.27 Million was for internal debt service, K128.89 Million external debt service and, K31.89 Million for amortization. During the month under review, K156.88 Million was funded towards the Presidential By-Election.

Commenting on the releases, Secretary to the Treasury Fredson Yamba said the Ministry of Finance will continue to ensure that prudent actions are undertaken to achieve the development objectives of the 2015 budget, within the established global fiscal and treasury management standards.

“The Ministry of Finance will also heighten the monitoring and evaluation of budget and economic affairs so that national development programmes continue to produce results that are beneficial to the people of Zambia, and reassuring to the regional and international investor community,” he said.

***

Meanwhile Secretary to the Treasury Fredson Yamba has said the Government is concerned with emerging incidences of avoidance of tax obligations by some shop owners.

“Of specific concern over the last few months is the retail sector, whereby several traders have entrenched the habit selling vatable products without issuing cash-register receipts to buyers,” said Mr. Yamba.

Mr. Yamba said the Government does not want to continue losing the revenue which is needed to fulfill the promises made by leaders during the Presidential by-election campaign trail, adding that, to amalgamate the resource-base for financing employment creation, poverty reduction and social sector programmes, it is a duty of every person in a business which meets the relevant threshold, to issue official sale receipts and properly recorded tax invoices.

Mr. Yamba has stated that the action to request for receipts from shop owners/traders when purchases are made by customers is a civic duty and a very important manifestation of patriotism.

“Excuses from eligible shop owners for not using cash registers and, therefore, any departure from this requirement will no longer be tolerated,” he has warned.

Mr. Yamba has appealed to the general public to be vigilant and join in guarding public resources by ensuring that as much as possible, receipts generated from cash registers are obtained from traders so that the correct tax revenue is collected for the benefit of society.

“When traders do not issue receipts, we end up with low VAT collections from the retail and that’s inconsistent with the Government’s vision to improve tax collections for accelerated development,” he stated.

11 COMMENTS

  1. One hopes that such pronouncements are followed through. More often than not, allocations are either diverted elsewhere or not released/ reduced/followed up when required.

  2. ON PAPER, SOMEONE MIGHT BE EXCITED AND THINK THAT LUNGU’S GOVERNMENT IS BEGINNING TO WORK. THIS IS A LIE! THIS AMOUNT OF MONEY YOU HAVE SEEN IN FIGURES, AND ITS PROPOSED USE IS JUST ON PAPER. THE TRUTH IS THAT THESE GREEDY CRIMINALS IN CONTROL OF POLITICAL POWER WILL QUICKLY SHARE A LARGE CHUNK OF THIS MONEY. ONLY A QUARTER OF IT WILL BE INJECTED INTO SOME PROJECTS, WHICH WILL EVEN BE SUBSTANDARD. PF IS A CRIMINAL ORGANIZATION IN OUR COUNTRY.

  3. The PF announce what they intend to do as done, the reality is the money never reaches the intended purpose as figures realized here. only a few will reach the intended purpose. trust me I have been there.

  4. I think its time for a citizen audit. Can all well meaning Zambians join me in ensuring we hold these pathetic fools (PF) accountable for every cent of our money. Each ministry should be giving the public a monthly update of how the funds have been spent with accompanying evidence. We are not going to wait for the auditor’s general to start trying to recover money. I think donors should start providing funds directly to the programs other than through government.

  5. Most of this money just goes into PF thieves’ pockets. Chikwanda is high on that list and that’s what motivates him most to borrow money. There is really low value for our money because of the thieving nature of these PF guys. Projects in Zambia cost much higher than in other normal countries and villagers and PF cadres are happy and celebrating that there’s ‘unprecedented development’ in the country. Wake up docile Zambians!

  6. If the PF govt continues making K2.75 bn/month then clearly there will be a huge deficit: K2.75bn times 12 = K33bn per annum. deficit will be K46bn – K33bn = K13bn or 28%.

    • Donors are expected to fund about 10% (K4.6bn) of budget. So that dangerous hole may be about 18%(K8.4bn). So, folks should not get exited for nothing- be analytical. That is the reason you went to school. Illiterates or those with brain damage must not comment ’cause they spoil the debate.

  7. It’s easy to notice that we have a lot of illiterate cadres on these social for a. How else do you explain that every reasonable comment receives low rating?

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