“From Taxation to Transformation – How Zambia Can Make Its Budget Work for the People”- George N. Mtonga

“From Taxation to Transformation – How Zambia Can Make Its Budget Work for the People”

By George N. Mtonga, MBA

Zambia’s budget has grown in recent years, with over 80% of it now funded by domestic taxes. This is, by all accounts, a milestone worth noting. It signals that Zambia is inching toward greater fiscal independence and away from external aid dependency. But beneath this surface of progress lies a deeper, more troubling reality—60% of our population remains trapped in poverty.

This contradiction poses a critical question: How can a nation collecting enough in taxes to fund its own budget still leave the majority of its citizens behind?

The answer lies not just in how much we collect, but how we spend it.

1. **Education: The Equalizer We Continue to Underfund**

If we are serious about breaking the cycle of poverty, education must be more than a line item—it must be a national priority. Zambia cannot afford to treat education as a privilege when it is the most powerful tool for social mobility and economic participation.

That means increased investment in teacher training, infrastructure, digital literacy, and vocational education tailored to the job market. It means ensuring that a child in Kalabo has the same quality of education as one in Lusaka. Without this, we are not building an equitable future—we are entrenching inequality.

2. **Healthcare: Productivity Begins with Well-being**

A nation cannot prosper if its citizens are too sick to work or too burdened by medical bills to save or invest. A healthy population is a productive population. More funding must go toward rural clinics, maternal care, mental health, and affordable medication. The COVID-19 pandemic reminded us that public health is not a luxury—it is national security.

When families spend less on treating preventable illnesses, they can invest more in their futures. Health is not a cost; it is a foundational investment in human capital.

3. **Private Enterprise: The Engine of Job Creation**

The government cannot hire everyone. Zambia must become a country where starting a business is not a privilege of the elite, but a pathway out of poverty for the average citizen. That means cutting red tape, improving access to credit, and investing in entrepreneurial training—especially for youth and women.

Small and medium enterprises (SMEs) account for over 70% of employment in many developing economies. If we are to grow our tax base *without* taxing the poor even more, we must support the very businesses that can absorb labor and stimulate local economies.

4. **Fiscal Policy with a Human Face**

Zambia’s budget should be a tool of justice, not just arithmetic. It must reflect the aspirations of a country trying to rise. That means allocating resources not based on political mileage, but based on measurable impact on poverty reduction. The wealth must *trickle down*, not by rhetoric, but by design.

This is not a call for populist spending or reckless subsidies. It is a call for *targeted, smart investments* that create a multiplier effect: an educated child today becomes a tax-paying entrepreneur tomorrow; a healthy farmer today grows into a local supplier tomorrow.

5. **Accountability and Efficiency**

Finally, none of this will matter if we continue to lose billions to corruption and mismanagement. The more efficient our institutions become, the more each tax kwacha can do. Public trust in taxation only grows when citizens see results that improve their lives.

Zambia is at a crossroads. We can continue collecting taxes and applauding the numbers, or we can align those resources with the real needs of our people. The choice is ours. Let us not mistake fiscal progress for economic justice. Until the 60% are part of the growth story, the budget is not truly working.

**Because progress isn’t just about raising revenue—it’s about raising people.**