By Daily Revelation Reporter
Finance minister Dr. Situmbeko Musokotwane says following Parliament approval of the 2024 budget, the government needs the support of all other citizens to ensure the budget is implemented smoothly.
Last year, Dr. Situmbeko Musokotwane presented a budget of K177.9 billion, which was approved by Parliament and came into effect on January 1, 2024.
At a briefing convened to share points of emphasis on the 2024 budget, Dr. Situmbeko said the measures included in the 2024 budget are targeted at growth, especially with action taken to increase Constituency Development Fund (CDF), boost productivity in the agriculture and livestock sector, and accelerate mining production through Konkola Copper Mines (KCM), Mopani and other existing and future players.
He said the public sector has been positioned to ensure that all efforts are made to lessen the encumbrances faced by citizens in doing business.
Dr. Situmbeko also said the government will continue with zero tolerance to corruption and prudent financial management.
The minister said this year’s budget is expected to be funded from three key sources which include domestic revenues, expected grants from cooperating partners and financing (borrowing).
He explained that K141.1 billion is domestic revenues translating to 79 percent of the budget, K3.4 billion as expected grants from co-operating partners which translates to 2 percent and financing in the sum of K33. 3 billion and translating to 19 per cent of the budget or 5. 2 percent of GDP.
Dr. Musokotwane said in the 2024 budget, the government has set out key objectives targeted at unlocking Zambia’s economic potential among them attaining real GDP growth rate of at least 4.8 percent, reducing inflation to the 6-8 percent medium target and band.
He said the government has also set out objectives of maintaining international reserves above three months of import cover, increasing domestic revenue to at least 22 percent of GDP, reducing the fiscal deficit to 4.8 percent of GDP and limiting domestic borrowing to not more than 2.5 percent of GDP.
The minister also said given the resource envelope and key objectives, key expenditure policies to be implemented in 2024, are premised on the thematic areas of the Eighth National Development Plan (8NDP) which include economic transformation and job creation, human and social development, environmental sustainability and good governance and environment.
On Annual Borrowing Plan (ABP), Dr. Musokotwane said contraction of any new external loan will be restricted to concessional terms, largely from multilateral lenders such as the World Bank and African Development Bank.
He said as part of performance tracking, the Ministry will provide updates to the National Assembly on the implementation of the 2024 ABP, at mid and end of year.
The minister said to restore debt sustainability, the Ministry will continue to make progress on the debt restructuring exercise.
He said the debt restructuring once concluded will free up financial resources which will be channeled to strategic social and economic sectors.
