The United Kingdom Department for International Development (DFID) has announced that it will provide K660 billion as direct budget support to Zambia’s 2008, 2009 and 2010 national budgets.
Head of DFID Zambia Joy Hutcheon said the first payment of K140 billion will be disbursed to the Zambian government this month.
Ms. Hutcheon said the support funds will be transferred directly to the national budgets and not channeled through individual projects or programmes.
Ms. Hutcheon said the support is consistent with the department’s long-term commitment to Zambia’s development agenda as outlined in the 10 year partnership arrangement signed between the UK and Zambian governments in June 2007.
She said the decision to increase budget support follows a period of good performance by the Zambian economy which also coincides with increased allocations to the health and education sectors in this year’s national budget.
She added that Zambia has made significant progress since DFID commenced budget support in 2005 hence the decision to continue supporting the Fifth National Development Plan (FNDP) which aims to reduce poverty through economic growth, enhance the quality of education provision and improve access to health care.
Ms. Hutcheon said the Zambian government and DFID along with other cooperating partners providing budget support have agreed a framework to monitor the benefits of budget support and progress towards poverty reduction goals.
She said the framework includes indicators on FNDP priority sectors such as agriculture, private sector development, health, education and infrastructure which are strongly linked to the performance indicators in the FNDP.
Ms. Hutcheon urged government to continue making progress under the Public Management and Financial Accountability (PEMFA) and Public Sector Management (PSM) reform programmes which underpin its budget provision of budget support.