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Thursday, September 24, 2020

State committed to dismantling arrears -Mutati

Economy State committed to dismantling arrears -Mutati

Felix Mutati
Felix Mutati

Finance Minister Felix Mutati says government is doing its best to ensure that the stock of domestic arrears is dismantled.

Mr Mutati said this in relation to the K2.1 billion which has been released by the Treasury between December, 2016 and January 2017 targeted at domestic arrears.

And Government has today released K200 million for the 2016/2017 Farmer Input Support Programme (FISP).

This brings the total releases to the current seasons FISP to K800 million.

“The money locked in domestic arrears belongs to our people some of whom manage Micro, Small, or Medium Enterprises. We are committed to pay them,” he said, further adding that, “the government is working hard to ensure that these arrears are dismantled as and when the resource-envelop and competing demands allow.”

“We are putting in place systems to instill fiscal prudence and promote budget credibility by only financing programmed activities so that our fiscal objectives for the 2017 budget, the medium term expenditure framework and long-term development plans are met accordingly,” assured the Minister on government’s commitment to improve the handling of public resources, which this year will include revision of the Public Finance Act and enactment of the Planning and Budgeting Bill.

And Mr. Mutati has said the K200 million release for the 2016/2017 FISP will held to bring the economic diversification programme, through agriculture development, on track.

Of the K2.1 billion funds released by the Treasury between December 2016 and January, 2017, K701 million went to infrastructure related programs. Under this category, the Ministry of Higher Education got K70 million, Ministry of Local Government was given K70 million for water, sanitation, markets and bus stations, Ministry of General Education got K70 million, and Ministry of Health K76 million.

Others who received funds to dismantle arrears include the National Road Fund Agency which got K300 million for roads, the Ministry of Infrastructure and Housing which was given K90 million for infrastructure in the new districts, and the Lusaka South Multi-Facility Economic Zone (LS-MFEZ) which received K25 million to settle arrears related to construction of an electricity substation.

K615 million was released for agriculture related programs.This included K400 million for the Farmer Input Support Programme [FISP] for arrears which accrued in the 2015/2016 season, and a further K190 million for arrears under the Food Reserve Agency (FRA).

Other arrears targeted include an allocation of K80 million given to the Public Service Pensions Fund for pensioners, K69 million to the Electoral Commission of Zambia for reduction of arrears related to the 2016 general elections, K50.2 million for reduction of arrears for electricity imports, and K300 million to PTA Bank for fuel import arrears.


  1. Yes maybe there can be money in securation, Mutati must also think of separating pay days in the civil service,for example Ministry of education first week of the month Health second week Home affairs third week and Agriculture fourth week because getting paid same day the money finishes the same week and there is no civil servant helping the other in case of borrowing the next three weeks making Shylocks take advantage and exploit the poor civil servants.

  2. Mutati is just drifting with no Fiscal,Monetary and Balance of Payments support. The implementation of such policies is not possible without restoring Legitimacy. Lungu just has to find a handle to deal with the Petition and dispose it off. The Petition will not miraculous disappear so illegitimate Lungu will have to find a solution to this problem. Lets hope President Ian Khama of Botswana has given his advice on the Petition Resolution. AU,ECOWAS and UN are all eyes on SADC and Illegitimate Lungu.

  3. What percentage is the K80 million given to the Public Service Pensions Fund for pensioners to the whole outstanding bill? So the money poured into the fund by public service workers goes into consumptive programs probably explaining why an allocation has to be made from the general revenues! Pension contributions fund unexplained projects which deplete the PSDF coffers thus causing the untold misery suffered when retirees try to redeem pension entitlements! The colonial government had better administration capabilities!

    • Mutations is mocking retirees, and some pf cadres see presidential material in such nonsense, the number of retirees not cleared run into thousands, what is K80million? It will only cater for probably a hundred and something retirees, this is nothing looking at the backlog of unpaid retirees.

  4. Why not make pay period every two weeks makes for easier budgeting for government and staff..extend that to private sector as well

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