Finance Minister Margaret Mwanakatwe with President Lungu
Finance Minister Margaret Mwanakatwe with President Lungu

A total of K4.3 billion was released by the Ministry of Finance in December 2018 for capital programmes, agriculture development, public welfare, debt service, and general public service delivery operations in various Ministries Provinces and Other Controlling Bodies.

Finance Minister Margaret Mwanakatwe said of the K4.3 billion total funding, K1.5 billion was allocated to service both domestic and external debt, K437 million was spent on financing grant-aided-operations, and a further K1.1 billion went to various Government programmes, projects and public service delivery.

Mrs. Mwanakatwe said in a statement that in addition, K1.3 billion was funded for the wage bill for various public service workers including teaching, medical and security personnel.

Below id the full statement

TREASURY STATEMENT ON BUDGET IMPLEMENTATION

December 2018 Budget Implementation

During the month ended DECEMBER 2018, a total of K4.3 billion [FOUR POINT THREE BILLION KWACHA] was released by the Ministry of Finance for capital programmes, agriculture development, public welfare, debt service, and general public service delivery operations in various Ministries Provinces and Other Controlling Bodies.

Of the K4.3 billion total funding, K1.5 billion [ONE POINT FIVE BILLION KWACHA] was allocated to service both domestic and external debt, K437 million [FOUR HUNDRED AND THIRTY-SEVEN MILLION KWACHA] was spent on financing grant-aided-operations, and a further K1.1 billion [ONE POINT ONE BILLION KWACHA] went to various Government programmes, projects and public service delivery. In addition, K1.3 billion [ONE POINT THREE BILLION KWACHA] was funded for the wage bill (personal emoluments) for various public service workers including teaching, medical and security personnel.In December 2018, the Government released K399.6 million [THREE HUNDRED AND NINETY-NINE POINT SIX MILLION KWACHA] for numerous capital projects across the country of which K269.2 million went towards on-going works and completion of road projects and K10.5 million was allocated to the Rural Electrification Programme. In line with the Government’s vision not to leave anyone behind in national building, a further K10 million went towards the Constituency Development Fund (CDF).The Ministry of Finance also released K69.4 million [SIXTY-NINE POINT FOUR MILLION KWACHA] to support the operations of Public Universities. A further K15 million [FIFTEEN MILLION KWACHA] was released to finance the award of student loans and scholarships.

A sum of K116.7 million [ONE-HUNDRED AND SIXTEEN POINT SEVEN MILLION KWACHA] went towards the Farmer Input Support Programme (FISP). These funds were targeted at not only the speedy implementation of the e-voucher and the direct redeeming programmes but also to facilitate the dismantling of outstanding FISP obligations. The total amount released towards the FISP Programme from January 2018 to December 2018, therefore, stood at K1.86 billion [ONE POINT EIGHT SIX BILLION KWACHA]. Further, the Food Reserve Agency in December 2018 received K120 million for procurement of maize and other grains in order to help meet the strategic reserve requirements and liquidate some outstanding bills.

The Treasury also released K244.5 million [TWO HUNDRED AND FORTY-FOUR POINT FIVE MILLION KWACHA] to support some activities and operations of various institutions, of which amount, K153 million went towards the procurement of drugs and medical supplies in public health institutions. To continue reducing the country’s indebtedness and to ensure fiscal sustainability as charted in the Economic Stabilisation and Growth Programme [ESGP] and the Medium Term Debt Strategy [MTDS], the Government released a sum of K1.5 billion [ONE POINT FIVE BILLION KWACHA] in December 2018. These funds went towards both domestic and external debt obligations. A further K81.4 million was released to liquidate outstanding liabilities related to the consumption of goods and services by various Ministries, Provinces and Other Controlling Bodies.For Immediate Release

The Zambia Revenue Authority received K66.2 million [SIXTY-SIX POINT TWO MILLION KWACHA] while K89.9 million [EIGHTY-NINE POINT NINE MILLION KWACHA] was released as support for operations of local authorities across the country through the Local Government Equalisation Fund (LGEF). In this regard, the Government remains committed to strengthening the revenue base and improving collection efficiencies of local authorities. In 2019, there will be a review of relevant revenue enhancement legislation such as the RATING ACT to allow for mass valuation of properties. Other public entities and quasi-governmental institutions received K71.1 million [SEVENTY-ONE POINT ONE MILLION KWACHA] from the Treasury for their operations.

A full brief on the performance of 2018 revenue and expenditure measures will be shared in the next few weeks once information from the Ministry’s programme implementation dashboard on fiscal consolidation, economic stabilisation, and growth measures is fully analysed. This is in line with our commitment to the enhancement of information exchange on economic and financial matters.

2019 Budget Implementation

The Ministry of Finance has commenced the implementation of the 2019 National Budget. As we progress with the implementation of revenue and expenditure measures for the current fiscal year, we are cognisant of the interest by rating agencies, analysts, investors and other players in the economy to take our activities into account in their assessment of the economy.

As Government, we look forward to the coming of an International Monetary Fund [IMF] staff team for Article 4 Consultations this year. A team from the IMF was here in November, 2018, to exchange information on economic data that will facilitate the development of a macroeconomic framework for use during the Article 4 Consultations.

We will remain firm in our resolve to ensure that fiscal consolidation has a resounding impact on implementation of the Seventh National Development Plan, the Economic Stabilisation and Growth Programme, and the National Budget; manifested through an improved macro-economic environment, enhanced public service delivery and the uplifted well-being of our fellow citizens. In order to sustain growth and create wealth, it will also be important for stakeholders in the fiscal and economic management sphere to strengthen their commitment to the implementation of the measures outlined in the 2019 Budget and the Economic Stabilisation and Growth Programme.

This year, the Treasury will continue to pay special attention to arrears dismantling in sectors that will significantly reduce non-performing loans and release liquidity to the private sector. To promote fiscal consolidation, we will maintain a close watch on activity implementation in Ministries Provinces and Controlling Bodies so that there is strict adherence to programmed domestic financing for the year. We will also continue to strongly observe the Presidential directive on constant assessment of the quality of expenditure in the public sector in order to allow the Government to take remedial measures as unnecessary expenditures manifest.

Let me on behalf on the President of the Republic of Zambia, Mr. Edgar Chagwa Lungu, stress and assure my fellow citizens and the international community that the measures that we have put in place in the 2019 National Budget and the Economic Stabilisation and Growth Programme are an undertaking to set a sound foundation for improved economic management, sustained growth and enhanced well-being
of our people without leaving anyone behind.

Issued by:

//Original Signed//
MARGARET D. MWANAKATWE, MP
Minister of Finance
Republic of Zambia

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3 COMMENTS

  1. Hoping there is actual cash behind these figures, if the concerns raised by the Parliamentary Public Accounts Committee recently, then i am afraid only a smaller portion will get to the intended programmes.

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  2. “K1.5 billion was allocated to service both domestic and external debt”
    “K1.3 billion was funded for the wage bill for various public service workers including teaching, medical and security personnel”

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