K12.7 BILLION RELEASED FOR DEVELOPMENTAL PROGRAMMES, PUBLIC SERVICE DELIVERY, DEBT SERVICE, ARREARS AND WAGES
In October, 2023, the Ministry of Finance and National Planning released K12.7 billion to finance developmental programmes, public service delivery, debt service, arrears and wages. Of this amount K2.8 billion was released for transfers, subsidies and social benefits, K2.2 billion for debt service (domestic and external) including arrears, K2 billion for the implementation of various government programmes and general operations, and an additional K2 billion was spent on capital expenditure. Furthermore, the Government released K3.7 billion for the public service wage bill.
As indicated above, the Government released K2.8 billion for transfers and subsidies, of which:
1) K513.7 million for the Constituency development fund (CDF), and of the amount, K217.9 million was for secondary schools and skills development bursaries, and K295.8 million was for youth and women empowerment. Regarding CDF, Finance and National Planning Minister Dr Situmbeko Musokotwane, MP, assures the nation that the Government will fully disburse the outstanding balances before 2023, ends. Going into 2024, the unspent 2023 CDF balances will be retained by respective Constituencies to enable implementation of all targeted CDF projects;
2) K537.9 million was released as grants to support the free education policy in public schools. Next year, we will continue to provide free education by paying school fees in public schools for all learners at early childhood, primary and secondary education levels;
3) K115.1 million for operations of public universities, student loans and scholarships. Next year, the allocation for Higher Education Loan Student Board will be increased to ensure that more vulnerable students are supported with loans and meal allowances under the scheme – See Budget Speech: https://www.mofnp.gov.zm/?wpdmpro=2024-budget-speech;
4) K490.2 million for hospital operations and Grant Aided Institutions (GAIs) in Government Ministries;
5) K325.9 million to the Public Service Pension Funds as funding gap and an operation grant;
6) K245.3 million for the Social Cash Transfer Programme;
7) K111.6 million for the Local Government Equalization Fund;
(8) K279.2 million as a grant to ZRA to support operations and resource mobilisation; and,
9) K160.8 million for the Food Security Pack Programme. As recently stated during the winding-up of debate on the 2024 Budget in Parliament, wider measures on food security, consistent with the Government’s commitment to continue on the path of lowering the cost maize production, will be implemented. Key among the measures is the reduction in cost of fertilizer, to promote productivity as a way of facilitating the downward trend in the cost of mealie meal. We will continue engaging millers to reach an understanding on reducing mealie-meal cost by procuring maize stocks from the Food Reserve Agency (FRA). In addition, FRA will be releasing stocks of maize for community purchases so that citizens could mill the maize using cheap technologies like hammer mills.
In the month under review, K1 billion was disbursed for the Farmer Input Support Programme (FISP). Clearly, the agriculture sector is a key driver of our economy, therefore, it requires sustained support to increase productivity, enhance value addition, and strengthen market linkages. Before the year ends, the Government will launch the Comprehensive Agriculture Support Programme (CASP) which will encompass extension service support, access to finance, irrigation development, support to value addition, and storage and logistics.
In October, 2023, the Government also released K2 billion to facilitate implementation of developmental programmes and other general operations under various government institutions. A further K2 billion towards capital expenditure, was released, of which: K1.4 billion for various projects in Ministries, Provinces and Agencies; K471.4 million for road infrastructure; K105 million for water and sanitation; and, K38.4 million for the Rural Electrification Programme.
In line with the Government’s commitment to reduce indebtedness and attain sustainability, a sum of K1.9 billion was released last month for payment of both domestic and external debt obligations. We take this opportunity to reiterate that next year, domestic and external financing will be mobilised in accordance with the Annual Borrowing Plan to be approved by Parliament. This will help us close the financing gap in the 2024 Budget and facilitate implementation of various programmes and projects which we would not be able to implement from general revenues alone.
To facilitate business continuity, the Treasury released K268 million towards dismantling of arrears owed to suppliers of goods & services. The Government is aware of the challenges associated with access to affordable finance by Micro, Small and Medium Enterprises (MSMEs), some of whom are suppliers of goods and services. Apart from using the Citizens Economic Empowerment Commission to empower MSMEs, the Government has continued to provide funds through facilities such as Women Empowerment, Constituency Development Fund, and the Youth Empowerment Programme. The total allocation for these empowerment initiatives amounts to K1.4 billion in 2024. Going forward, the Government will continue to allocate funds to empowerment initiatives, and reinvest the revolving funds. We will also continue to leverage and promote private sector investments under various empowerment initiatives.
Related to wages (personal emoluments) for public service workers, the Government spent a total of K3.7 billion in the month under review. Gladly, we have continued to ensure that wages are timely paid. The total monthly figure will increase next year when we recruit 10,400 additional public service workers in an effort to improve staffing levels in needy sectors. In this regard, 5,400 will be recruited in the education sector, among whom 4,200 will be teachers and 1,200 will be non-teaching staff. The Government will also recruit 4,000 health personnel. The remaining 1,000 employees will be recruited across other sectors.
Conclusion
The Government stands by its commitment to actualize our national development priorities for the benefit of our people. The budget has continued and will continue to steer our economy on a positive trajectory towards growth and prosperity. Going forward, we are determined to enable our citizens in reaching their full potential through the efficient delivery of public services. We remain steadfast in our ambition to address concerns and challenges that Zambian’s are facing hence we are duty-bound in pursuit of creating sustainable fiscal space for achievement of national development aspirations. We are on course in our economic transformation programme.