By Jane Chanda
Minister of Finance and National Planning Dr Situmbeko Musokotwane says public officials need to ensure all necessary steps are taken to implement budgeted programmes for inclusive growth and improved livelihoods in 2025 and beyond, following the release of K23.1 billion for public service delivery in December 2024.
He stated that 55 percent of this amount, which translated to K12.7 billion, went towards debt service and arrears, highlighting the importance of debt restructuring in avoiding a fiscal disaster.
In a statement by the MOFNP yesterday, the minister revealed that K23.1 billion allocation included K3.9 billion for the public service wage bill, K3.1 billion for transfers, subsidies, and social benefits, K2.4 billion for implementation of various developmental programmes and general operations, and K1 billion for capital expenditure.
The minister provided a detailed breakdown of the notable expenditure items under transfers and subsidies, explaining that these allocations were crucial for supporting various social and economic programs.
“Notable expenditure items under transfers and subsidies included K1.1 billion for the Social Cash Transfer programme, K615.1 million for the operations of Grant Aided Institutions, K415.8 million for the Farmer Input Support Programme, K295.8 million for universities, students’ loans and scholarships, K240 million for Food Security Pack, K209.1 million as an operational grant for the Zambia Revenue Authority (ZRA), and K120.8 million for the Local Government Equalization Fund,” Dr. Musokotwane stated.
He added that the Treasury released K2.4 billion for general operations to facilitate various developmental programmes and government institutions, with notable allocations including K275 million for the Zambia Credit Guarantee Scheme and K70 million for the Timber Exchange.
Dr. Musokotwane reported that K1 billion was released towards capital expenditure for ongoing projects, with notable allocations including K383.6 million for road projects, K217.8 million for education infrastructure, K100 million for rehabilitation of public hospitals, K13 million for community markets, and K40 million for the ongoing construction of the Animal Vaccine Plant.
“Without debt restructuring, we would never have had any capacity to finance developmental programmes from our domestic resources by now,” Dr.Musokotwane stated.
He emphasised the government’s commitment to reducing indebtedness and achieving macroeconomic targets in 2025.
“The government is committed to achieving key economic objectives, including a 6.6% percent real GDP growth rate, 6-8% inflation, and increasing domestic revenue to 21.3% of GDP,” the minister stated.
Dr. Musokotwane also highlighted the significance of the Memorandums of Understanding signed with France and Saudi Arabia, which set the stage for finalising agreements with other creditor countries.
“The agreements, currently under negotiation, aim to ensure comprehensive debt treatment that supports Zambia’s economic recovery efforts in 2025 and beyond,” he stated.
The minister further announced that the MOFNP would host a town hall forum on January 22, 2025, to discuss Zambia’s economic performance and budget in 2024, as well as the outlook and policy thrust for 2025.
