Government has proposed to spend K173.0 billion in 2022 equivalent to 37.1 percent of Gross Domestic Product(GDP).
Unveiling the 2022 national budget in Parliament in Lusaka today, Minister of Finance and National Planning, Situmbeko Musokotwane said of this amount, revenues and grants are K100.7 billion representing 21.6 percent of GDP.
ZANIS reports that Dr. Musokotwane stated that the gross financing of K72.3 billion, which translates to a budget deficit of 6.7 percent of GDP, will be raised from external and domestic sources, including a drawdown on the Special Drawing Rights.
“I wish to indicate that our treasury truly is very tight because of the excessive borrowing of the recent past. The numbers that I will present clearly show that the domestic revenues we shall collect are not even enough to service debt and pay public sector salaries,” he said.
The Minister has since proposed to spend a total of K86.4 billion for general public services translating to 49.9 percent of the total budget.
He explained that of this amount, K51.3 billion is for external debt service while K27.4 billion will go towards domestic debt service.
And Dr. Musokotwane emphasized that the United Party for National Development (UPND) administration remains committed to the promises made to the Zambian people during the campaign period.
“As UPND government, we stand by our campaign promises to the Zambian people,” assured Dr. Musokotwane.
The Minister noted that the 2022 budget provides incentives that will help create job opportunities for the people of Zambia, address poverty at household and community levels as well as increase support for the social sector.
“Resources will be taken closer to the people to improve service delivery,” he added.
Dr. Musokotwane observed that logically, there are only so many people that government can hire into jobs stating that the rest of job opportunities must come from the private sector.
“And for such jobs, there is no limit for new job creation as long as the policy environment attracts investments,” he stated.