Zambia’s Ministry of Finance Releases K14.4 Billion in May 2024 Budget for Public Service Delivery

The Ministry of Finance and National Planning has announced the disbursement of K14.4 billion in May 2024 to support public service delivery across the country.  

In the latest allocation, K1 billion has been directed towards transfers, subsidies, and social benefits. This includes K359 million for Grant-Aided Institutions (GAIs), K250 million for the Social Cash Transfer Programme, K100.6 million for the Food Security Pack Programme, and K291.1 million to the Zambia Revenue Authority (ZRA) to bolster operations and enhance domestic resource mobilization.

To sustain infrastructure projects, particularly road construction, K328.8 million has been earmarked under capital expenditure. This funding is crucial to ensure ongoing and future infrastructure developments remain on track.

A substantial K1.8 billion has been allocated for the implementation of various developmental programs and the general operations of government institutions. This includes K602 million for initiatives supported by cooperating partners and K160 million for the procurement of essential drugs and medical supplies. 

The public service wage bill accounted for K3.9 billion, covering salaries for health workers, teachers, and diplomats stationed abroad.

In line with its debt reduction strategy, the government has allocated K7.3 billion for debt servicing, with K4.1 billion dedicated to external debt and K3.2 billion to domestic debt.

Finance and National Planning Minister, Dr. Situmbeko Musokotwane, emphasized the treasury’s commitment to pursuing transformational reforms and initiatives aimed at maximizing value for money in public service delivery. 

He highlighted the successful third review of the Extended Credit Facility (ECF) Programme with the International Monetary Fund (IMF), which includes a request for an additional US$388 million to maintain macroeconomic stability and support Zambia’s response to external shocks.

Additionally, the signing of grant agreements with the World Bank signifies the international community’s confidence in Zambia’s economic reforms. The agreements include US$100 million for the National Energy Advancement & Transformation (NEAT) Programme and US$157 million for the Second Phase of the Girls’ Education & Women’s Empowerment & Livelihoods Project (GEWEL-2).

Since July 2023, Zambia has secured US$717 million in grants from the World Bank, including funding for the Transport Corridors for Economic Resilience (TRACER) Project, the Zambia Health Emergency Preparedness, Response, & Resilience Project, and the Zambia Second Macroeconomic Stability, Growth & Competitiveness Development Policy Financing (DPO-2).

Scheduled Public Events for the Ministry of Finance and National Planning

• 11th June 2024: Parliament resumes, with the Minister set to present the revised budget.
• 12th June 2024: African Network of Chief Economists of Government, a World Bank initiative, at Intercontinental Hotel, Lusaka.
• 12th June 2024: ABSA Group Chair and CEO’s Conference in Livingstone.
• 14th June 2024: Payout Ceremony for the Africa Risk Capacity (ARC) Group.

The ARC Group, a specialized agency of the African Union, aids African governments in planning, preparing, and responding to extreme weather events and natural disasters. By providing innovative financing solutions, the ARC Group helps safeguard food security and livelihoods of vulnerable populations.