By Jane Chanda
Economist Kelvin Chisanga says Finance minister Dr Situmbeko Musokotwane’s warning of stiffer punishment for misuse of the Constituency Development Funds (CDF) is not enough, saying the recently revised CDF Act still lacks comprehensive measures to prevent monetary and evaluation commitments.
During the presentation of the 2025 National budget to Parliament, Finance and National Planning minister Dr Situmbeko Musokotwane announced an increase in the CDF for 2025 from K30.6 million to K36.1 million per constituency in the 2025.
Speaking in interview with Daily Revelation, Chisanga said although CDF increment aimed to decentralise central government functions, underlying gaps hindered its effectiveness.
He cited key issues of concern which included lack of uniformity in development patterns across constituencies, inadequate communication strategies, and insufficient skills development for fund handlers.
He also noted that the government kept increasing the CDF despite having missing gaps, particularly economic leakages, making it challenging to advance certain projects.
He criticised the CDF Act, saying it did not extensively cover measures to mitigate monetary and evaluation commitments, requiring a model ensuring tight expenditure oversight and alignment with CDF objectives.
Chisanga called for skills development through in-service training for those handling CDF funds, enabling them to keep pace with changing requirements.
He suggested creating a uniform communication strategy, cascaded across all constituencies, ensuring a common baseline for development.
“Even when you look at the report by the Auditor General, we have more cases to do with malpractices around the funds, we need to devise a very good and uniform sort of communication strategy that should be able to be cascaded across all constituencies,” he said.
Chisanga also proposed quarterly reviews and rotational arrangements to ensure accountability.
“We need tight oversight to safeguard public resources, preventing hesitation in tax payments and compromising critical economic elements.”
He suggested a moderate approach to framing projects, prioritising critical areas like education, health, and vulnerable groups.
According to Chisanga, effective CDF management was crucial for Zambia’s economic growth and development.
The economist noted that the 2024 budget showed positive signs of economic health but climate change events impacted key sectors like energy and food.
“The 2025 budget prioritises human capital development through education and healthcare investments, policy reforms for improved governance, prudent resource allocation, economic transformation for inclusive growth and job creation, and social development for vulnerable groups,” Chisanga said.
Chisanga urged addressing climate change impacts on Zambia’s economy, particularly in the energy and food sectors.
He said the nation aspired to balance economic activities with external shock buffers and safety nets, without tax rebates, using the 2024 budget template.
Chisanga added that a comprehensive approach was necessary to achieve sustainable economic progress.
He also said there was a need to have a proper grip even from the government’s central point of view to ensure constant monitoring of CDF activities.
