Government has unveiled an expansive 2012 budget on today, with big increases in social spending and farming subsidies to be paid for by a rise in mineral royalties and a debut $500 million Eurobond.

In the first budget since September’s election upset, Finance Minister Alexander Chikwanda put flesh on the bones of new President Michael Sata’s promises to spread the benefits of strong growth in Africa’s biggest copper producer.

Overall spending would rise to 27.7 trillion kwacha ($5.5 billion), or 26.5 percent of gross domestic product (GDP), from 21 percent in 2011, Chikwanda said.

Domestic borrowing for the year would amount to 1.3 percent of GDP and foreign financing would be 3.0 percent, giving an overall deficit of 4.3 percent of GDP, Chikwanda said. Foreign grant aid would amount to less than 2 percent of GDP.

Analysts said the budget certainly qualified as “pro-poor”, although the extra spending did not mean the southern African nation was loading up on debt.

“Even though the budget outlined slightly more spending than had been anticipated, it’s still taking place against a backdrop of increased revenue collection, and an effort to raise more meaningful receipts from previously undertaxed sectors,” said Razia Khan, head of Africa research at Standard Chartered in London.

Most of the extra spending would go on 45 percent and 27 percent increases for health and education respectively, and a 38 percent boost for a farming subsidy programme that has underpinned nearly a decade of 6 percent-plus annual growth.

“The Patriotic Front (PF) won the 2011 election because it listened to the needs of the people at all levels,” Chikwanda said in his budget speech. “Now that we are in government, we have not and will never distance ourselves from the people.”

PF leader Sata, a gruff populist who spent 10 years as opposition leader, has caused slight nervousness among foreign investors, not least for his vitriolic criticism of Chinese mining firms.

However, he toned down his rhetoric in the latter stages of campaigning, and since coming to office has been at pains to build a working relationship with a sector that accounts for more than 70 percent of all foreign exchange earnings.

However, Chikwanda put some pressure on the mining firms, raising minerals royalties to 6 percent from 3 percent for base metals such as copper, and to 6 percent from 5 percent for precious metals.

He also said Lusaka would resurrect the previous administration’s plans to tap international capital markets to raise infrastructure funds, with the launch of a debut $500 million 10-year Eurobond during the year.

However, he made clear that Zambia, a nation of 13 million people, would not get sucked into unsustainable debt.

“As we spend more on our socio-economic infrastructure, our ability to meet our debt obligations should not be ignored,” he said. “In this regard, the government will target concessional borrowing as the first option.”

He also assuaged fears of looser monetary policy, saying the Bank of Zambia would continue to target single-digit inflation through its control of money-supply growth, a move that should support the kwacha currency.

“Investors will be encouraged by this, and we expect the kwacha, impacted by global volatility in recent days

[Reuters]

UPND President Hakainde Hichilema has called for a more effective fiscal regime in the mining sector. Mr. Hichilema told ZANIS in an interview in Lusaka yesterday that government should introduce windfall tax in order for the country to derive maximum benefits from mineral resources.

He said the mining sector has the potential to raise revenue for investment in other sectors such as Education, Health and Agriculture hence the need for a proper tax regime.
He advised the ruling PF to institute fair and mutual negotiations with mining companies on the need for a more profitable tax regime for the mining sector.

Mr. Hichilema added that the 2012 national budget should not only focus on expenditure but also revenue especially from the mines. Mr. Hichilema said the 2011 national budget did not achieve the intended targets due to under allocation of funds to various sectors.

He explained that the trend could be addressed through increased revenue from mines which could be allocated to other equally important sectors. He accused the former MMD government of not allocating adequate resources to critical sectors such as Agriculture, Health, Education and Energy among others.

He expressed hope that the PF government will tomorrow deliver a fine budget which will address both expenditure and revenue

Meanwhile, Mr. Hichilema has welcomed the postponement of the date for the three by- elections that were supposed to be held on November 24th this year.

Mr. Hichilema said the postponement will enable the electoral Commission of Zambia (ECZ) to put in place measures that would ensure that the elections were not contentious to all parties that would participate.

He told media that ECZ requires ample time to prepare itself so that it produces a good results certificate at the end of voting.

Mr. Hichilema observed that the last general elections were marred with a lot of malpractice because the commission could not produce results certificate for each polling station.

“In the last general elections, there are so many contentious issues that have been raised so there is need for the commission to prepare adequately for the forthcoming by-elections,” Mr. Hichilema said.

He hoped the extension by one week would give ECZ time to deliver the election materials on time adding that the idea of panicking at the last minute was unprofessional.

Meanwhile, Mr. Hichilema has advised the commission to consult with stakeholders before they make decisions concerning the nation.

“The ECZ were not aware that the grade nines will be using the schools for exams when they were setting that date. That is why it is important to always consult before you make these decisions,” he said.

And the UPND leader has disclosed that his party was ready for the by-elections in all the three constituencies despite them not fielding a candidate in Nakonde.

The parliamentary by-elections will be held in Nakonde, Magoye and Chongwe constituencies.

[ZANIS]

EXPECTATIONS are high, as Finance and National Planning Minister Alexander Chikwanda climbs the stairs of ‘Manda Hill’ to unveil the contents of the copper-coated briefcase – the 2012 National Budget, the first under the Patriotic Front (PF) Government. During the campaign, the PF made promises, chief among them, giving tax relief to workers for them to have “more money in the pockets.”

Mr Chikwanda, a graduate of Lund University in Sweden, is likely to adjust the exempt threshold from K1 million to about K1.5 million and revisit the tax bands which range from 25 to 35 per cent while Value-Added Tax (VAT) at 16 per cent may take a downward trend.

Thought VAT is an indirect tax, its reduction will give some comfort to the private sector players as their goods and services will in effect follow a downward trend. This would benefit consumers because goods and services will be affordable while on the other hand sales will shore up for the private sector because the turn-over will increase. To compensate for loss of revenue, the sure recourse is increasing the mineral royalties, currently at three per cent, corporate tax to rise from 35 while the variable profit tax should equally be revised upwards in the mining sector.

In his Budget presentation, it is anticipated that Mr Chikwanda will indicate other sources to balance the equation. Particularly, the Zambia Revenue Authority should capture the untaxed informal sector. The challenge though is for the new Government to fork out a K4 trillion from today’s Budget to finance hurriedly contracted road projects by the previous administration in the run-up to the September 20 tripartite polls.

In effect, the K4 trillion may translate into about 25 per cent of the total 2012 Budget. In his opening speech to Parliament, President Michael Sata said his Government would focus on infrastructure development, agriculture, tourism, local Government and housing, commerce and trade, among priority sectors.

Infrastructure and social sector development in the 2011 MMD Budget was allocated 50 per cent. Of the K20.5 trillion National Budget presented last year, K15 trillion came from taxes, K539 billion from non-tax revenue while K1.6 trillion came in as Budget and project support from cooperating partners.

Additionally, K1.2 trillion came from domestic borrowing while K1.9 trillion was sourced externally. In infrastructure development allocation, the manufacturing sector is likely to benefit through establishment of more multi-facility economic zones, a model the PF has pledged to continue with.

It is expected that emphasis will be placed on employment creation in various sectors, particularly for the youth. Job creation, investment growth, well-structured health and education sectors, accelerated diversification from copper mining to other equally critical sectors of the economy will be the basis upon which the PF Government will undertake an effective public service delivery.

[Times of Zambia]

THE police have launched investigations into an alleged plot by unnamed opposition leaders and retired army generals planning to assassinate Government leaders spearheading the fight against corruption.

Inspector-General of Police Martin Malama warned in Lusaka yesterday that the police would not condone criminality and lawlessness. He said people that were plotting criminality and lawlessness would face the full wrath of the law. He said the police would safeguard the country against any external and internal threats against the country. “The police will ensure that the country continues to enjoy the peace it has been enjoying and I want to categorically state that the country is safe,” he said.

Dr Malama, however, assured that the country was safe for both local and foreign investments. He said the people in the country would continue to enjoy the protection of the police service. He said the police received various threats against their lives from some citizens and it was their obligation to investigate such allegations and that those to be found wanting would be prosecuted by the courts of law.

Defence Minister Geoffrey Mwamba told the Zambia National Broadcasting Corporation (ZNBC) on Wednesday that some opposition leaders and ex-generals were plotting to assassinate Government leaders that were spearheading the fight against corruption. Mr Mwamba said security agencies were trailing these people
[Times of Zambia]

By now most people have watched the new Conan the barbarian movie ,staring Jason Momoa. The hollywood actor put on 20lbs ( 9kg) of muscle for the role made famous by Arnold  Schwarzenegger.

Achieving Jason Momoa’s physique doesn’t require you to lock yourself in a dungeon-like weight room for months on end. The Conan the Barbarian star’s colossal physique was built through simple 30-minute, extremely-high-rep sessions .

THE WORKOUT

Each workout should take 30 minutes. Pick three from the following five exercises and take a day’s rest between each session. Try to use a weight around two thirds of the maximum load you can lift in one rep.

Squats
Shoulder Presses
Incline Bench Presses
Cable Crosses
Pull-Ups

How its done;

• With your first move, perform 7 reps.
•  Then take a 7-second rest.
•  Then perform another 7 reps. Take another 7-second rest
• Continue in this way until you have completed 7 sets of 7 reps. Rest for 30 seconds.
• Then do a 6-rep round: 6 sets of 6 reps with 6-seconds rest between each set.
• Finish with a 5-rep round to bring the total rep count for that exercise to 110.
•  Take a breather. Then do the whole thing again with two more exercises.
• Bloodcurdling war cries optional

Jason Momoa had this to say  “You put on a lot of weight very quickly – and you also burn a lot of fat. If you really want to test yourself, try to gradually increase the load you use each day you perform the workout. Pick a heavy weight and it will get you shredded and build a lot of muscle.”

Fat slayed. Muscle plateaus conquered. You are content.

BY KAPA187

Southern Province Minister Mr. Lukolo Katombora has admitted that an undisclosed number of bags of maize in certain parts of the province have not yet been secured to prevent the grain from been soaked by the rains.

Mr. Katombora notes that more needs to be done by the Food Reserve Agency (FRA) to secure all the maize bought by the agency in the province to prevent it from going to waste.

ZANIS reports that in an interview today, Mr. Katombora said a good number of bags risk being soaked if the FRA delays to protect them.

He cited areas such as Magoye, and parts of Kazungula Districts as some of the areas where the maize was yet to be properly covered with tarpaulins.

“Yes I can confirm that some maize at some depots in the province have not yet been properly secured and therefore I wish to instruct the FRA to quickly move in and cover all the maize in the province,” said Mr. Katombora.

He said the new government would not tolerate any one that would cause the maize to go to waste.

And Mr. Katobora has said the distribution of farming inputs to farmers under the Farmer Input Support Programme was going on well in all parts of the province.

He envisaged that all the farmers would receive the inputs before the onset of serious rains.

Meanwhile, Chief Kathumba of the Chewa speaking people of Katete district in Eastern Province has bemoaned the poor state of roads in his area.

Chief Kathumba says roads in his area have not been rehabilitated unlike in other chiefdoms of Kawaza and Mba’ngombe.

[pullquote]“Everything will go to waste if the Food Reserve Agency does not address the matter,” he said.[/pullquote]

He complained that his chiefdom has remained underdeveloped and that it has not fully benefited from the Rural Electrification project and yet ZESCO pylons pass just about 20 kilometers away from his palace.

The traditional leader was speaking yesterday when District Commissioner Anselimo Mbuzi called on him.

Chief Kathumba expressed hope that the Patriotic Front (PF) government would address some of the pressing issues people face in his area such as access to clean, safe drinking water.

Meanwhile, the traditional leader has expressed worry that maize stored at Nchingilizya mobile satellite depot was going to waste.

Chief Kathumba observed that some of the maize had started germinating saying the Food Reserve Agency (FRA) should quickly move in before the situation worsens.

“Everything will go to waste if the Food Reserve Agency does not address the matter,” he said.

And Katete District Commissioner Anseliomo Mbuzi assured Chief Kathumba that government would attend to the needs of the people in his area.

Mr. Mbuzi noted that government had already shown commitment to addressing the needs of traditional leaders by creating a new Ministry of Chiefs and Traditional Affairs.

“This ministry will look at challenges faced by chiefs in their chiefdoms and seek ways in which they can be addressed,” he said.

ZANIS