UPDATE ON MAY 2024 BUDGET RELEASES
By MFNP
In May 2024, the Ministry of Finance and National Planning released K14.4 billion to finance #publicservice delivery. Of this amount, K1 billion was released for transfers, subsidies and social benefits, K1.8 billion for implementation of various developmental programmes and general operations, while K328.8 million was released for capital expenditure. Furthermore, K7.3 billion was spent on both domestic and external debt service, while K3.9 billion was released for the public service wage bill.
As indicated above, the Treasury released K1 billion for transfers, subsidies and social benefits, of which: K359 million was disbursed for the operations of #GrantAided Institutions (GAIs); K250 million for the countrywide Social Cash Transfer Programme; K100.6 million for the Food Security Pack Programme; and, K291.1 million as a grant to #ZambiaRevenueAuthority to support operations and domestic resource mobilisation efforts. And to ensure that road infrastructure projects remain on course, the Treasury also released K328.8 million under the #capitalexpenditure category.
For general operations, K1.8 billion was released to facilitate implementation of operational programmes under various government institutions. Notably, among the releases was K602 million for programmes supported by #cooperatingpartners and K160 million for procurement of drugs and other medicals supplies. The Government also spent a total of K3.9 billion on costs relating to the wage bill for various public service workers, including #health, #teaching, and overseas allowances for diplomats in Zambia’s missions abroad.
Furthermore, and in line with #Government’s commitment to reduce indebtedness, a sum of K7.3 billion was released of which, K4.1 billion went to the payment of external debt service while K3.2 billion was for domestic service.
Reflecting on the budget releases for May, 2024, #Finance and #NationalPlanning Minister Dr Situmbeko Musokotwane says the #treasury will continue to pursue #transformationalreforms and initiatives aimed at attaining an optimum value for money equilibrium in public #servicedelivery.
The Minister reiterates that the Staff-Level-Agreement with the International Monetary Fund (#IMF) on economic policies and reforms – following the successful third review of the Extended Credit Facility (ECF) Programme; which includes a request by the Zambian Government to the IMF Board to access an additional US$ 388 million to preserve macroeconomic stability and support #Zambia’s response to external shocks, and the signing of GRANT AGREEMENTS with the World Bank for the US$ 100 million National Energy Advancement & Transformation (NEAT) Programme and the US$ 157 million for the Second Phase of the #Girls’ Education & Women’s Empowerment & Livelihoods Project (GEWEL -2) Programme, are not only clear testimonies of the confidence of the international community in the economic transformation reforms being pursued by the Government but also reflect the international communities firm willingness to work with Zambia, albeit under difficult circumstances exacerbated by the #drought situation which has led to widespread power and food supply challenges.
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ADDITIONAL NOTES ON WORLD BANK GRANTS
Last week’s signing of two agreements with the World Bank, brings total amounts received in grants from them to US$ 717 million, since July, 2023. The breakdown is as follows:
1) US$270 million for the Transport Corridors for Economic Resilience (TRACER) Project. The funds are for rehabilitation of #Serenje to #MpikaRoad, development of One Stop Border Post at #Nakonde, and implementation of efficient transport flow in Dar-Es-Salaam Corridor, among other interventions;
2) US50 million for the Zambia Health #EmergencyPreparedness, Response, & Resilience Project;
3) US$127 million for the Zambia Second #MacroeconomicStability, Growth & Competitiveness Development Policy Financing (DPO-2). The rresources have been channelled towards budget support; and,
4) US$ 13.38 million as additional grant financing for the Girl’s Education & #WomenEmpowerment & #Livelihood Project.
SCHEDULED PUBLIC EVENTS FOR THE WEEK FOR THE MOFNP
1) 11th June, 2024
Parliament resumes. The Minister of Finance and National Planning will present the revised budget during the course of this session, which runs for several weeks.
2) 12th June, 2024
African Network of Chief Economists of Government (World Bank initiative). #Intercontinental Hotel, #Lusaka.
3) 12th June, 2024
#ABSA Group Chair and CEO’s Conference. Livingstone.
4) 14th June, 2024
Payout Ceremony for the Africa Risk Capacity.
The African Risk Capacity (ARC) Group is a Specialized Agency of the AAfrican Unionestablished to help African Governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters. Through collaboration and innovative financing, the #ARCGroup enables countries to strengthen their disaster risk management systems and access rapid and predictable financing when disaster strikes to protect the food security and livelihoods of their vulnerable populations.