HIGHLIGHTS OF THE 2023 FIRST QUARTER BUDGET PERFORMANCE
● Total revenues and grants collection amounted to K26.3 billion, 2.6 percent above the targeted revenue collection for the quarter. This was largely due to favourable performance in VAT and exceptional revenue collected from ZICTA from the sale of bandwidth spectrum.
● Non-tax revenue collections amounted to K4.2 billion against a target of K3.83 billion. The collections from ZICTA largely accounted for this outturn.
● In terms of spending, we released K38.5 billion to implement various projects and programmes, against a target of K37.8 billion. Notable expenses were as follows:
● Personnel emoluments amounting to K10.8 billion, 4.8 percent below the projection;
● Use of goods and services amounting to K3.7 billion against the target of K3.4 billion, mostly for procurement of drugs and medical supplies;
● Releases towards transfers and subsidies amounted to K7.0 billion, 1.6 percent above target. Funds went to the following notables arears FISP; CDF; grants to schools, universities and hospitals; among others;
● Social benefits exceeded the target by 65.5 percent at K2.1 billion against the target of K 1.3 billion. Most of the resources went to the Pension Fund and the Social Cash Transfer;
● Capital expenditures amounted to K2.3 billion and were 34.3 percent below target. Funds went towards roads, fuel depots, water projects and other infrastructure; and
● Government released K3.3 billion for assets and liabilities, close to double the allocation of K1.1 billion. Funds went towards dismantling of arrears and empowerment funds.
This difference in revenues collected versus expenditures amounts to a deficit of K12.7 billion for the first quarter of 2023.
For the fourth quarter in 2022, the deficit stood at K16.31billion.
Therefore, the Government has managed to reduce the deficit this quarter while still investing in human capital and social programmes that aim to provide greater opportunity and security to all Zambians.
DEBT POSITION
During the January engagement, the Minister of Finance and National Planning presented the debt position as at end-September 2022, with the Central Government external debt estimated at US $13.36 billion.
At the close of the year, central Government external debt amounted to US $13.96 billion from US$13.04 billion in 2021.
The increase was largely due to disbursements from multilateral creditors.
On the domestic debt front, Zambia’s stock of Government Securities increased slightly from K210 billion at end 2022 to K211.7 billion as at end-March 2023. When measured in dollar terms, the domestic debt decreased from $11.6 billion to $9.9 billion on account of the Kwacha depreciation.