Finance Minister Margaret Mwanakatwe has revealed that government has already exceeded its budget for the first half of 2018 by K5 billion owing to huge interest payments and capital expenditure.
In her mid-year economic performance briefing on Thursday, Mrs. Mwanakatwe said the total expenditure, including amortization, for the first half of 2018 amounted to K39.6 billion, against the budgeted K34.19 billion.
“Total expenditure (including amortization) for the first half of 2018 amounted to K39.6 billion, against the budgeted K34.19 billion. The major components, which were above target, were interest payments by 43.2 per cent and capital expenditure by 65 per cent,” Mrs Mwanakatwe said.
She said going forward, expenditure control will be at the core to achieve fiscal adjustment given the tight financing conditions and higher deficit.
“In this regard, measures on enhancing payroll management, expenditure cuts in areas such as use of goods and services, progressing on procurement reforms and debt reprioritization will be the focus for the rest of the year. This is meant to create a lower spending base as we get into the 2019 financial year,” Mrs. Mwanakatwe said.
I wanted to comment but this LT of yours has been hijacked by polical and tribal wolves with little intelligence!
The Miles Sampa’s mayoral elections will cost Maggie another K5 billion.
Gather the 42 Fire trucks to distinguish the burning economy.
HaJaJa and HaSPakata?
The 2018 budget presented and approved by parliament is K71.7 Billion. First quarter expenditure is K38.9 Billion. This leaves K32.8 Billion. Budget overun is K5 Billion owing to huge interest payments and capital expenditure. This leaves K27.8 Billion for the remaining three quarters of the year….So using the current trend, budget overun for next 3 quarters will be K15 Billion leaving K12.8 Billion from the budgted amount.
Brace for an unprecedented rough ride into 2019!
Not good Margaret, not good at all … you have short term and long term mitigation mechanisms at your disposal but you’re getting blinded by the day to day running of the ministry.
Get the heavy lifting done first and that’s to refinance all Euro Bonds and after it will be smooth sailing. Don’t let me down, I have a lot of faith in you.
Secondly, increase local revenue realization mechanisms. Use your discretionary speeding on enhancing revenue not extra curricular activities … let’s roll.
Like Sinkamba, I want you to succeed … call me you have my number. Let’s talk about this.
God speed!
Meanwhile, ZRA Commissioner General Kingsley Chanda says the authority collected K27.7 Billion in gross taxes from 1st January to 30 June 2018. Subtract that from K38.9 Billion leaves you with K11.2Billion. The deficit in real terms is therefore 29%…….
Shala wambe!!!!!!!
When we told you that a fake accent, deviated mouth and flasks of alcohol is all what Maggie brought to the table, you thought we were being scornful. Why Edgar can’t appoint competent people, only he knows. Caleb Fundanga, for instance could be a good Finance minister, but he comes from a wrong tribe!!
Dream on B.R Mumba Sr. Refinancing at what cost? Certainly not from capital markets because they have no confidence in Zambia at present. Zambia’s debt is probably held by vulture funds now because pension funds and other investment houses aren’t allowed by rules to hold below-investment grade debt. Maggie’s options now are to impose VAT on mealie meal, education texbooks, perhaps raise the VAT rate to 20% and that sort of thing. Her numbers are in a mess and can only get messier. I feel sorry for her. She inherited all this from one Alex Chikwanda the man who used to think he was the greatest thing to economic management since the advent of multi-party politics in 1991.
Really laughable …this chap JUNIOR is full of himself ..yes your friend will call you and ask for your assistance!!
Ridiculous !!!
So when ECL was shown this figure(K5 billion) on 14th June, he panicked and directed Mwanakatwe to issue the new austerity measures in an effort to save his face.
Does this figure also include 150mil interest for the failed ZESCO guarantees?
Second half projection total=12billion……
Even from China, Lungu’s ministers will come come back empty handed. The Chinese govt will summon their economic attache at the Lusaka mission and ask him to recommend what to do and to give an explanation about how we are managing our affairs. Of course he will say it as it is. After that Chinese officials will lay hard ball with ECL’s ministers. Maggie will come back to impose levy on municipal water bills, raise VAT rate, increase fees on land transactions, increase road tax, increase Mutati’s K2 levy on cement sales etc. These are the options availabe to Maggie Mwanakatwe. And if the exchange rate slides, her numbers can get messier still.
“….She said going forward, expenditure control will be at the core to achieve fiscal adjustment…”
But lungu is telling us he will hiring more DCs and creating more districts ??
PF is in a mess. There are 2 governments:
– Lead by Inonge, Maggie, Sumaili, Mutati,
– Lead by Ba Edgar, Freedom Sikazwe, Chilufya, Kapyongo, Lusambo,
Dora not decided.
UPND is a mess! With a thief clinging to power in spite of five consecutive losses he still wants to stand in 2021 and lose Hagain for the sixth time! He sees that as normal and so are his tribal supporters.
@Spaka like lilo,
Good point, and shows how this Government is in a mess. One is busy hiring DCs and creating more districts, without caring about the costs while Maggie doesn’t know what is going on because she is focussed on covering up the mess
Just buy a few more FIRE ENGINES! And how about another WORLD TOUR for Vasco de Lungu? A few more districts anyone?
Government short of money? Just BORROW MORE! And BORROW BORROW BORROW BORROW until Zambia collapses!
Does anyone in this PF Government care if their BORROWING has made credit unaffordable for businesses?
More fire engines to put out fires caused by arsonists, tribal gathering and terrorist organization?
I remember the late Paul Ngozi – A DAVIDI EEHH, TEKANYANIIIII
To put it in the words of one daft PF cadre ‘Let’s roll!’
And the funny thing is the dingbat who says that is from the financial sector…what we call an educated fooooooool
@4, No I was talking about the arsonist party that is a terrorist organization that sets fire to infrastructure, then I said, Let’s roll! Then we have an uneducated fuuuu at #4.1 Larry Mweetwa! Oh, sorry HaJJ.
Kkkkk budget overruns simply means that you lack discipline in enforcing control measures. Imagine, the IMF has already dissected your appetite for over borrowing and poor economic management and has hence suspended the bail out indefinitely. Like one genius aptly put it ”you can not keep on doing the same thing and expect a different result”. Your approach to prudent economic management are lackadaisical to say the least. Instruments of controls are their but we are failing to put them to good use because of political expedience. We must learn to live within our means instead of always thinking of borrowing, again can we see real action instead of empty talk all the time.
The blind leading the dumb indeed….meanwhile her boss is doing the contrally increasing expenditure!!
The blind leader in UPND leading the blind followers but because it is “SUPPORT YOUR LOCAL TEAM” mantra at work they cannot discern it!
We can still do it! Never give up. There will be bumps and setbacks! Every journey has! We can still pull through it. Never listen to naysayers. “If only HH were the coach of the Zambia National Team, Zambia could win two World Cups and three African Cups.”
Just go back to the toilet….
Abena Sharon chiwelewele!
Sharon makaka we makaka!!
WELL PUT SHARON!
Overrun? What do you mean? Where have you got the money that you are “over-running” with? Are you printing money? Economic experts please explain this
And Lungu is going round the country preaching to the gullible cadres that the economy has improved and doing very well and the poor souls are seen dancing and cheering him on. nomba line mwakulanya amenshi. koseni! Lungu is a crook and a very dull one for that matter.
Bit by bit everything is now being revealed. First they denied the debt until she said it’s over 9 billion. Next they said we are on course and our economic policies are working but then they said things are not so well and we have to introduce austerity measures. Now it’s budget overrun because we have failed to control our expenditure. Finally they will say we have failed, we are broke so IMF please help us and by then it will be too late for anyone to do anything.
Its too late already, even the IMF has no hope in these dummies.
It’s good to see people ignoring tribal sentiments from some cadres. This is a sign that people are more focussed on discussing serious issues than spend time arguing over meaningless comments aimed at one tribe. The economy is in the hands of the ruling party and therefore they are the ones to answer for the current failures we are facing. Leave tribe out of such discussions.
Well, when you exclude a section of people from participating in the mainstream economy, that is the price you pay. The LORD GOD Almighty put us together as one people so that we leverage ethnically driven strengths but some people thought they were wiser than God. You have not seen anything yet and one day, some people will be forced to swallow their pride and own-up!
SO ALL YOU PESSIMISTS BELIEVE THAT THE SITUATION IS NOT MANAGEABLE? IT’S A SHAME
HaSpaka ati shani? What are you saying? Whatever, it does not make sense, some jargon from masked hitmen from upnd.
And Ha jj, sorry is that the name of a Arab terrorist?
That’s why she was fired from abroad she is useless absolutely useless another puppet of the PF that’s all.
She just enjoys getting sloshed and drunk that’s all a total failure .
She should go back to school wear kabadulas
This shows how in reasoning we are…instead of articulating issues nicely on the table, you bring upnd,tribal comments and hh? For what? The issue is not about hh or upnd? The issue is about government budget over run…simple..Sharon try to grow in your head coz that mentality will not take you any where… Find solution to the problems facing the country..such kind of people like you will take this country no where…
SO EVEN WHEN YOU ARE ADVISING GOVT, REFRAIN FROM BELITTLING THE PF
Kaya mu Zambia mwandi…