Finance and National Planning Minister Dr. Situmbeko Musokotwane has called for consistent monitoring of budget execution by all stakeholders in their sectors of interest, and urged all members of the public, individual and corporate, to actively participate in the formulation of the 2024 National Budget and the 2024 to 2026 Medium Term Expenditure Framework (MTEF).
He has observed that Zambia’s budget implementation credibility has now been restored as all budgeted programmes are now being funded, considerably.
In March 2023, the Government released a total of K15.5 billion to finance public service delivery. Of this amount, K5 billion was released for transfers, subsidies and social benefits, whilst K5.1 billion was spent on debt service (domestic and external) and dismantling of arrears, and K3.6 billion was spent on the public service wage bill. In addition, the Government released K1.3 billion for implementation of various government programmes and general operations, while K534.9 million was spent on road infrastructure.
From the K5.1 billion released for debt service and dismantling of arrears, a sum of K2.9 billion went towards both domestic and external debt payments. From the K5.1 billion, the component related to dismantling of arrears for suppliers of fuel, goods, and services, got K2.2 billion.
Furthermore, the Government released K5 billion towards transfers and subsidies. Notable expenditure items under this category, included, among others:
1) K2.4 billion to clear invoices related to the procurement of inputs for the 2022/2023 farming season under the Farmer Input Support Programme;
2) K665.5 million for Community Projects under the Constituency Development Fund (CDF);
3) K569.1 million for the nationwide Social Cash Transfer Programme;
4) K313.6 million for the operations of hospitals, other grant aided institutions under various Ministries;
5) K308.3 million for the Food Security Pack (FSP);
6) K185.6 million for the Public Service Pension Fund (PSPF) for pensioners financing gap and grant;
7) K115.1 million for university grants to ensure smooth operations; and,
8) K111.6 million to the Local Government Equalization Fund.
The Government also released K1.3 billion to facilitate service delivery under various public institutions. Under this aspect, notable expenditure items included:
1) K436.7 million for the procurement of drugs, medical supplies and equipment in agencies under the Ministry of Health;
2) K360.4 million for general operations of Ministries, Provinces and Agencies (MPA’s);
3) K43.6 million for TAZAMA workers’ salaries; and,
4) K534.9 million towards road infrastructure.
2024 Budget Preparations
We now take this opportunity to notify the public that the Government has commenced preparations for the 2024 National Budget and the 2024 to 2026 Medium Term Expenditure Framework. The Budget and the MTEF are important economic policy tools that help to shape the direction of economic policy and other development priorities, through an all-inclusive process.
In view of the foregoing, the Ministry of Finance and National Planning will be conducting broad-based consultations on the 2024 Budget and the 2024 to 2026 MTEF. The general public, private sector players (micro, small, medium and large firms, inclusive), Government departments and agencies, civil society, youth, women, and all other interest groups (too numerous to mention), are hereby invited to submit tax, non-tax (such as user fees and fines) and expenditure proposals, for our review and possible inclusion in the 2024 National Budget and the 2024 to 2026 MTEF.
To ensure that as many stakeholders as possible are involved in this open and transparent process, a considerable consultation period of up to 28th April, 2023, has been set.
The Ministry is confident that the provided period will create considerable room for citizens and all other stakeholders to actively participate in the formulation of the 2024 Budget and the 2024 to 2026 MTEF.
The participation of all national-level stakeholders in the budget formulation process is essential to ensure that the Government and stakeholders move together in creating a conducive policy environment for business; employment creation; generation of wealth; and facilitating a sustainable future for all citizens and prosperity for the nation.
The Government looks forward to focused proposals that should follow the guidelines below:
1) Clearly state the sector or policy area of interest for which remedies or stimuli are sought and whether such remedies or stimuli relate to policy, public expenditure, tax, or non-tax measures;
2) Outline the challenges of the current tax and non-tax policy regime and explain how local businesses and other developmental affairs are negatively impacted, as a result;
3) Clearly state proposals for public expenditure and or taxation in line with the Eighth National Development Plan (8NDP) and their expected impact on economic recovery and growth, fiscal sustainability, public welfare, and general public service delivery; and
4) Justify why the Government should undertake the suggested measures and the expected positive impacts, thereof.
All submissions will be considered objectively. As a way of ensuring that proposals are evaluated professionally, an inter-ministerial team, will, where necessary, invite those who will submit proposals for further discussions or clarification on any matter concerning their submissions. All proposals should be submitted by 28th April, 2023.
In view of the foregoing, Finance and National Planning Minister, Dr. Situmbeko Musokotwane calls on all stakeholders to monitor budget execution in their areas of interest and ensure that they actively participate in the formulation of 2024 Budget and the 2024 to 2026 MTEF.