Friday, 30th September, 2022

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         Friday, 30th September, 2022

The House met at 1415 hours

[MADAM SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

_______

 BUSINESS OF THE HOUSE

The Vice-President (Mrs Nalumango): Madam Speaker, let me acquaint the House with some idea of the business it will consider next week. 

Madam, on Tuesday 4th October, 2022, the Business of this House will begin with Questions for Oral Answer, if there will be any.  This will be followed by presentation of Government Bills, if there will any. Thereafter, the House will commence the debate on the Motion of Supply on the 2023 National Budget.

Madam Speaker, on Wednesday, 5th October, 2022, the Business of the House will start with Questions for Oral Answer, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider the following Private Members’ Motions to be moved by Mr Munir Zulu, hon. Member of Parliament for Lumezi Constituency.

  1. re-introduce meal allowances at public universities; and
  2. abolish position of District Commissioner.

Hon. PF Members: Hear, hear!

Madam Speaker: Order, hon. Members!

The Vice-President: The House will then continue with the debate on Motion of Supply on the 2023 National Budget.

Madam Speaker, on Thursday, 6th October, 2022, the Business of the House will commence with Questions for Oral Answer, if there will be any. Thereafter, the House will consider presentation of Government Bills, if there will be any. After that, the House will continue with the debate on the Motion of Supply on the 2023 National Budget.

Madam Speaker, on Friday, 7th October, 2022, the Business of the House will start with The Vice-President’s Question Time. Thereafter, the House will deal Questions for Oral Answer, if there will be any. The House will then consider presentation of Government Bills, if there will be any. Then, the House will continue with the debate on the Motion of Supply on the 2023 National Budget.

I thank you, Madam Speaker.

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MOTIONS

BUDGET ADDRESS

The Minister of Finance and National Planning (Dr Musokotwane): Madam Speaker, I beg to move that the House do now resolve into Committee of Supply on the Estimates of Revenue and Expenditure for the period 1st January, 2023 to 31st December, 2023, presented to the National Assembly on Friday, 30th September, 2022. This is pursuant to Article 202 of the Constitution of Zambia (Amendment) Act No. 2 of 2021.

Madam Speaker, I am a bearer of the message from the President of the Republic of Zambia, Mr Hakainde Hichilema recommending favourable consideration of the Motion that I now lay on the Table.

Dr Musokotwane laid the paper on the Table.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, this is the second Budget that the United Party for National Development (UPND) Administration is presenting to this House. During the first year of being in office, the Administration has achieved significant socio-economic milestones.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, from being a country known for negative narratives such as crushing debt, worst performing currency in the world, rising inflation and stagnating growth. Our country has now regained respect, hope and admiration among other nations of the world for the strong efforts we are making to improve the economy and the livelihoods of our people.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the UPND Government has laid a firm foundation for restoring debt sustainability. The stability of the exchange rate of our currency has convincingly been restored. On top of that, we have lowered inflation and, of course, there is now Budget credibility. In simple terms, this means that the Government is now spending in accordance with what Parliament approves with only minimal deviations.

Mr Kampyongo: Question!

Dr Musokotwane: Madam Speaker, in the social sector, we are providing free education up to Grade 12 as we have always promised in our manifestos. We recruited an unprecedented number of teachers and frontline medical personnel. In addition, we increased the number of beneficiaries and the transfer value under the Social Cash Transfer (SCT) programme. Further, we cleared all outstanding pension arrears under the Public Service Pensions Fund (PSPF) which were due as at end-2021.

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, we have delivered a bankable blue print for national development, the Eighth National Development Plan (8NDP) covering the period 2022 to 2026. Our commitment to economic, social and structural reforms contained in the plan helped us secure an arrangement under the extended credit facility from the International Monetary Fund (IMF). The Programme with the IMF has enabled Government to make progress in resolving the debt crisis left of course, by my friends “the Patriotic Front (PF) members” across there on your left.

Hon. Government Members: Hear, hear!

Dr Musokotwane: It has also helped to unlock resources from bilateral and multilateral development partners to support our development agenda.

Madam Speaker, achieving so much over so short a time period has not happened by chance. Rather, it reflects the character of the UPND and its leadership. The UPND is methodical in its approach and it is a goal getting organisation. The progress that Government has made over the past year should therefore, give hope to our citizens that any outstanding development challenges will be confronted with similar zeal and dedication.

Madam Speaker, now that the economy has stabilised, this Government will turn its attention to addressing some of the critical outstanding developmental issues in our country. Among these are, job creation, better incomes, and infrastructure, especially roads. To achieve these, it is imperative that our economy grows bigger, growth, not just in one year, but growth continuously every year and forever.

Madam Speaker, during the Official Opening of the Second Session of the Thirteenth National Assembly, the President of the Republic of Zambia, Mr. Hakainde Hichilema, emphasised the need to achieve socio-economic transformation by implementing measures to stimulate growth and ultimately improve the livelihoods of our people. It is in this regard, that the theme for the 2023 Budget is “Stimulating Economic Growth for Improved Livelihoods”.

Madam Speaker, the 2023 Budget, therefore, provides the policy framework, resources and incentives to drive growth. The policies, strategies and measures contained in this Budget will go a long way towards unlocking local and foreign investment, promoting value addition and enhancing trade. This will stimulate economic growth, create jobs, and improve livelihoods of our citizens.

Madam Speaker, this Budget Address is in four parts. Part I highlights the global and domestic economic developments in 2022. Part II presents the macroeconomic objectives, policies and strategies for the 2023 Fiscal Year. Part III provides details on the estimates of revenue and expenditure as well as the borrowing requirements for 2023. In Part IV, I will conclude my Address.

PART I

GLOBAL AND DOMESTIC ECONOMIC DEVELOPMENTS IN 2022

Global Economic Developments

Madam Speaker, in 2022, three notable events have dragged global growth down, namely, the in the Russia/Ukraine conflict, partial lockdowns in China related to the Coronavirus Disease 2019 (COVID-19), and tighter financial conditions in advanced economies. These developments have led to the downward revision of global growth to 3.2 per cent from 6.1 per cent recorded in 2021. Consequently, prices of commodities such as copper weakened to an average of US$7,422 per metric tonne in September from US$9,550 per metric tonne in December, 2021.

Madam Speaker, the spill-over from the Russia/Ukraine conflict has led to supply-side disruptions. One of the consequences has been an increase in prices of critical commodities such as petroleum products and fertiliser. The average crude oil price in the first half of 2022 rose to US$104.97 per barrel from US$69.00 per barrel, recorded during the same period in 2021. That led to higher domestic petroleum pump prices, with the diesel price peaking at K28.01 per litre in July. Similarly, the international price of fertiliser as measured by the Fertilisers Price Index (FPI), increased by 60.5 per cent per metric tonne between August, 2021 and August, 2022.

DOMESTIC ECONOMIC DEVELOPMENTS

Economic Growth

Madam Speaker, the economy has continued to grow although at a slower rate. By the end of this year, the gross domestic products (GDP) is projected to grow by 3.0 per cent compared to a recovery of 4.6 per cent in 2021. The slowdown in growth is mainly attributed to lower output in agriculture due to late onset of rains, drought and flash floods in some parts of the country. Weak performance was also recorded in the construction sector.

Budget Performance

Madam Speaker, the overall Budget performance in 2022 is set to be one of the most favourable in many years. Revenues have so far exceeded the target while expenditures have been contained within the target. A very important aspect of the Budget so far is that there has been a high degree of credibility and certainty in the release of funds. Deviations from the Budget are within the permissible 15 per cent variation. Unlike in the past, the Government has consistently been making monthly budgetary releases in accordance with the requirements of ministries, provinces and agencies.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, a Budget with less credibility diverts quite significantly from what Parliament approves. With the deviations, it is often the social sectors that lose out. Indeed, for many years, Zambian Budgets have suffered from lack of credibility. As an example, year after year, this House would approve and appropriate the Constituency Development Fund (CDF). However, for nine consecutive years, from 2011 to 2019, the money was not fully released.

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, total revenues and grants for the period January to August, 2022 amounted to K72.1 billion and were 3.5 per cent above the Budget target of K69.7 billion. Tax revenue stood at K54.4 billion, non-tax revenue at K13.5 billion, while grants were at K4.2 billion. The positive performance was mainly attributed to increased collections in Corporate Tax and Pay As You Earn (PAYE). By the end of 2022, total revenue and grants are expected to be K101.04 billion against the Budget target of K100.7 billion.

Madam Speaker, total expenditure for the period January to August, 2022 amounted to K94.3 billion against the target of K110.2 billion. Of the total expenditure, K85.1 billion was financed from domestic resources while K9.2 billion was foreign financed. Notable expenses were the 2022 Census of Population and Housing, CDF and dismantling of arrears. Others were payment of retirement benefits and the Government contributions under the PSPF and the Local Authorities Superannuation Fund (LASF).

Madam Speaker, the Budget deficit for 2022 was projected at 6.7 per cent of the GDP. The year-end deficit is, however, now projected to be higher at 9.8 per cent of the GDP.

Debt Position

Madam Speaker, Zambia’s unsustainable debt has been in the news for a long time. At a personal level, the national indebtedness has hit most people through the depreciation of the Kwacha, rising inflation and poor funding for essential services.

Madam Speaker, when I presented the Budget last year, the Government undertook to resolve this problem and not leave it hanging as it had been since 2016. We are almost there. Given the extent of the debt problem, its resolution required engagement with the creditors to restructure the debt so that it becomes affordable to service.

Madam Speaker, while the creditors recognised that it was necessary to restructure our debt, they were also alive to the risk that Zambia might not take steps to prevent the re-occurrence of another debt crisis. Debt restructuring cannot be useful if shortly afterwards, Zambia once again, got into yet another unsustainable debt situation. This is where the IMF comes in. Madam Speaker, Zambia is a member of the International Monetary Fund (IMF). We partly own it and it is –

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane:  Madam Speaker, it is shocking that some hon. Members do not know that we partly own the IMF.

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, this is where the IMF comes in. Zambia is a member of the IMF and it is also very true that we partly own it and it is part of the IMF’s mandate to provide assurance to creditors that an indebted country has put in place measures to better manage its economy. To undertake this task, the IMF itself needed to be convinced that indeed, the country, Zambia, has got its act together. Through the policy pronouncements contained in the 8NDP and its implementation, the IMF and other creditors are now fully convinced that Zambia is worthy supporting. They are now supporting us. With the IMF supported programme in place, Zambia is now engaging the creditors so as to conclude debt restructuring which will then result in debt reducing to affordable levels.

Madam Speaker, this is something we have struggling with since 2016 and now, it is being done. In the meantime, the stock of public external debt amounted to US$14.87 billion as at end of June, 2022. Of this amount, the Central Government external debt was US$13.25 billion while guaranteed and non-guaranteed external debt for state-owned enterprises was US$1.50 billion and US$113.69 million, respectively.

Madam Speaker, the Central Government external debt increased by 1.6 per cent to US$13.25 billion as at end of June, 2022 from US$13.04 billion as at end of December, 2021. This was on account of disbursements mainly from multilateral creditors. Loans from multilateral creditors such as the IMF and the World Bank are obtained on very concessional terms, meaning around five years of grace period, very low interest rates and sometimes, zero, and are repayable over long time periods. The stock of the Central Government external debt includes US$1.8 billion principal arrears and US$868.4 million interest arrears, arising from the ongoing debt service standstill.

Madam Speaker, debt levels have been rising recently for two reasons. Firstly, there are some projects that have been carried over from the previous Government which were being financed by loans. Whereas many were cancelled as you recall, it was deemed necessary to carry on with others because the projects had reached an advanced stage. We were not there to say we cancel anything because it was under the PF. If it made sense and it is at a critical level, we will carry on with it. So, some of the borrowing was to finish these projects. 

Secondly, the concessional loans I mentioned, are needed to revive key economic sectors so that the country has capacity to service the restructured debt. These funds are also needed to finance essential services such as education and health.

Madam Speaker, the stock of Government guarantees was US$1.50 billion as at end of June 2022. ZESCO Limited and Kafue Gorge Lower Hydropower Project accounted for 93 per cent of this. 

Madam Speaker, the stock of domestic debt, that is, Treasury Bills and Government  Bonds, increased by 5.3 per cent to K203.9 billion as end August, 2022 from K192.9 billion as at end of December, 2021. The funds raised were used to finance the Budget.

Domestic Arrears

Madam Speaker, the stock of audited central Government domestic arrears or pending bills, excluding fuel and electricity, decreased by 8.4 per cent to K44.0 billion as at end of June, 2022 from K48.1 billion as at end of December, 2021. The reduction is due to the Government paying suppliers of goods and services and curbing the accumulation of new arrears. By doing so, we have begun addressing the injustice of the Government impoverishing its people by delaying to pay for goods and services provided.

Madam Speaker, when fuel arrears and outstanding ZESCO Limited bills to independent power producers are included, the stock of domestic arrears decreased by 4.4 per cent to K76.4 billion as at end of June, 2022 from K79.9 billion as at end of December, 2021.

Madam Speaker, to halt the accumulation of domestic arrears and reduce the stock, the Government will continue to implement the dismantling of domestic arrears strategy. The strategy will among others, link procurement commitments to the approved Budget and provide funds to dismantle the existing arrears.

Monetary and Financial Performance

Madam Speaker, the growth in consumer prices, as measured by the inflation rate, has slowed to single digits. For September, 2022, inflation was recorded at 9.9 per cent from 22.1 per cent in September, last year. The key drivers of lower inflation have been the appreciation of the Kwacha and improved supply of food items.

Madam Speaker, the amount of money lent by the banking system grew by 13 per cent in the first half of 2022 against a contraction of 5.4 per cent in the second half of 2021. The increase was largely due to accelerated disbursements to eligible financial service providers from funds provided by the Bank of Zambia (BoZ) under the Targeted Medium-Term Refinancing Facility. The facility was established in 2020 to strengthen and enhance financial sector resilience, as well as support economic recovery during the COVID-19 pandemic. We recognise, however, that financing remains a challenge especially for small and medium enterprise (SMEs).

Madam Speaker, the performance of the banking sector remained strong, supported by growth in capital through retained earnings. Liquidity conditions were also favourable on account of high stock of liquid assets and disbursements from the targeted medium-term refinancing facility. Asset quality improved as the non-performing loans ratio continued to be below the 10.0 per cent prudential benchmark, at 6.4 per cent at end of August, 2022. The improvement in the credit performance was largely attributed to recoveries, restructuring of credit facilities and bad loan write-offs.

Madam Speaker, the performance of the non-bank financial institutions has also improved. The ratio of non-performing loans reduced to 13.8 per cent as at end of August, 2022 from 23.1 per cent at end of August, 2021. This is attributed to Government clearance of third-party arrears and remaining current in remitting loan instalments for civil servants to the non-bank financial institutions. In other words, that problem whereby civil servants got loans and they had stopovers for the money to be deducted but the Treasury was failing to remit, that problem has now ended.

Hon. Government Members: Hear, hear!

External Sector Performance

Madam Speaker, preliminary data indicate that exports were US$5.964 billion, almost US$6 billion, during the first half of 2022 compared to US$5.216 billion during the same period last year, a growth of 14.3 per cent. This outturn was largely explained by the increase in copper export earnings that rose by 12 per cent to US$4.4 billion, driven by higher copper prices. Imports also increased by 41.5 per cent to US$4.3 billion, supported mostly by the appreciation of the Kwacha against the United Stated Dollar and improved economic activity. Most of the imports were capital items and raw materials used in production. Overall, the trade balance remained in surplus, at US$1.6 billion.

Madam Speaker, as at end of August 2022, gross international reserves were US$3.0 billion, representing three and a half months of import cover. This is above the target of at least three months of import cover for 2022.

Madam Speaker, on a year-to-year basis, the Kwacha has appreciated by 5.2 per cent to K15.79 per United States Dollar. The gain has largely been on account of improved supply of foreign exchange mainly owing to increased inflows from the mining sector and greater confidence in the Government, particularly commitment to reforms. The exchange rate of the Kwacha against major currencies has been relatively stable over this period.

PART II

MACROECONOMIC OBJECTIVES

Madam Speaker, the New Dawn Administration has laid a solid foundation to stimulate growth, create jobs and improve the livelihoods of our people. This will help us attain the Vision 2030 of becoming a prosperous middle-income nation.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to consolidate and build on the achievements on the economic front, the following macro-economic objectives will be pursued in 2023:

  1. attain a real GDP growth rate of at least 4.0 per cent;
  2. reduce inflation to within the target band of 6-8 per cent by the end of the year;
  3. maintain international reserves above three months of import cover;
  4. mobilise domestic revenue to at least 20.9 per cent of the GDP;
  5. achieve a fiscal deficit of not more than 7.7 per cent of the GDP; and
  6. limit domestic borrowing to not more than 3.0 per cent of the GDP.

Dr Musokotwane drunk water.

Hon. Members: Hear, hear!

Laughter

POLICIES AND STRATEGIES FOR 2023

Dr Musokotwane: Madam Speaker, I will now present the policies and strategies that underpin the allocation of resources in the 2023 Budget. These are prescribed according to the strategic development areas of the 8NDP, namely: Economic Transformation and Job Creation, Human and Social Development, Environmental Sustainability, and Good Governance Environment.

ECONOMIC TRANSFORMATION AND JOB CREATION

Madam Speaker, the problems that we have faced which I just described, emanate from debt unsustainability. As we have just heard, these problems are now under control. The discussions with creditors for restructuring our debts have started; the exchange rate of the Kwacha is stable; inflation is falling; and we have stepped-up expenditure on social services for our people.

Hon. Government Members: Hear, hear!

Dr Musokotwane: However, serious issues remain outstanding. These include limited job opportunities at all levels, from the most educated to the uneducated. For those in employment, average earnings are generally low. Our infrastructure such as roads, railways, energy, schools, and hospitals requires a lot of attention. I must also add that even where infrastructure exists, a lot of it requires attention in terms of maintenance and repairs. These issues come out very often, with lots of passion from hon. Members of Parliament in this House.

Madam Speaker, whilst there have been attempts by past Administrations to address these development challenges, it is clear that little progress has been made, particularly in creating decent job opportunities. This is due, in part, to the fact that the population is expanding much faster than the few jobs that get created. However, the issues of providing jobs, better incomes, better infrastructure, and better social services are issues where we must succeed at all costs.

Madam Speaker, Zambia will not fail. We take inspiration from countries that were poorer than us, with lesser natural resources than ourselves and yet, they have transformed themselves into prosperous and progressive economies. In the process, they have provided millions of jobs, upgrading their infrastructure to first world class standards, and providing decent livelihoods to their people. The success stories of the South East Asian countries have been told over and over again. The formula for their success is not rocket science. Economic success requires creating an enabling macro-economic environment, embracing the private sector, creating a conducive legal and administrative environment that is friendly to business, educating the people and keeping them healthy. Once these conditions are established, it becomes easy to attract investment. These are all things that we are capable of emulating provided we are willing to change our mindsets and perceptions about the development process. This is what we are going to do. It is clear that it is only through stimulating and sustaining economic growth that we can create enough jobs to reduce poverty, generate sufficient tax revenue to fund infrastructure, pay for social services, and improve the livelihoods of our people, and thereby, reduce inequality.

Madam Speaker, growing the economy must also be explained. It simply means that each year, Zambia’s production of goods and services must increase from what was produced the previous year. Not just a bit but significant increase, not just from one year to the next but every year, production must exceed that of the previous year. That is what is meant by sustainable economic growth for reducing poverty. To achieve this, we must love and promote investments. This is what changed Asia.

Madam Speaker, to achieve what I have just described, it is necessary that social partners collaborate and work together. The private sector has to take centre stage in the economic transformation journey. It is the private sector that has to invest and manage enterprises that engage in the ever expanding production. The Government’s role is to design and implement, together with partners, policies and strategies, to attract and secure investment in sectors such as agriculture, mining, tourism, and manufacturing, that will drive our economy.

Madam Speaker, further, the Government must maintain an economic and business environment that supports growth. It must also invest in supporting infrastructure and manpower development. This must be done without corruption while ensuring judicious use of public funds. Private citizens also have a very important role to play. Each one of us must appreciate our responsibilities as citizens. Above all, we must understand that the common good can only be so because we have, as individuals, contributed to it to the best of our ability. The principles I have just outlined are what will guide us as we implement policies and strategies to attract investment in sectors such as agriculture, mining, tourism, and manufacturing, that will drive growth. This in turn, will raise economic performance.

Madam Speaker, I will now present the specifics of performance, policies and strategies in economic transformation and job creation in the development area.

Agriculture, Livestock and Fisheries Sector

Madam Speaker, agriculture, livestock and fisheries sector remains the main source of livelihood for the majority of our people. It is the largest employer of our population, provides us with food, raw materials for industry and earns the country foreign exchange.

Madam Speaker, in the crop sub-sector, the performance was generally weak during the 2021/2022 agricultural season. The production of crops such as maize, rice, sorghum and cassava declined due to the late onset of rains as well as drought and flash floods in some parts of the country.

Madam Speaker, to increase crop productivity among small-scale farmers, the Government is improving extension service delivery. This year, the Government has commenced with the recruitment of 256 extension officers and additional extension officers will be recruited in 2023.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Government will procure 1,623 extension kits, 1,000 tablets, 621 motorbikes and rehabilitate over 536 camp houses. With all these measures, 1.5 million small-scale farmers will be provided with extension services through physical visits and Electronic Extension (e-Extension) platforms.

Madam Speaker, with regard to irrigation development, the Government will construct a total of forty dams across the country over the medium term. In 2023, sixteen dams will be constructed. To actualise the Chiansi Irrigation Scheme in Kafue District, the Government has secured financing of US$10 million from the African Development Bank (AfDB) to cover 600 ha in field irrigation by small-holder farmers. The financing will also be used to establish storage facilities and youth skills development centre. This project will benefit over 12,000 people.

Mr Kampyongo: Hear, hear!

Dr Musokotwane: Madam Speaker, there is need to improve agricultural productivity and we will do this through undertaking comprehensive reforms. I am duty bound to provide clarity on a false matter that was recently circulating in some social media to the effect that the Farmer Input Support Programme (FISP) will no longer be available because of the IMF supported programme. To the contrary, FISP continues in 2022/2023 Farming Season with the same strength as before.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, however, in addition to providing input support, FISP will be reformed to include extension service support, irrigation development, access to finance, support to value addition, and storage and logistics. The programme will also ensure better targeting and equity in the provision of subsidies and services. You will remember that in the past, certain areas were left out. This time, FISP is based on One Zambia One Nation ...

Hon. Government Members: Hear, hear!

Hon. Government Member: Not one sided!

Dr Musokotwane: ... and not one sided. The new expanded programme will be called the Comprehensive Agriculture Support Programme (CASP). Under this comprehensive agriculture support programme, what is, however, true, is that the Government will be scrutinising the beneficiaries in detail to ensure that only the targeted and deserving people receive subsidised fertilisers. My colleague, the hon. Minister of Agriculture, will elaborate on this when he takes the Floor to present the Budget for his ministry. When I come to the Budget section of this speech, I will provide the full details of the financial outlay that the Government is proposing for FISP in the 2023/2024 Farming Season.

Madam Speaker, this new approach is important as it will contribute to our national food security especially at a time like now when the global food supply is tight. It also helps us to uplift many of our small-scale farmers who, are in any case, producers of most of our food. As we continue with FISP under the new programme, it is also important that we understand its limitations in the development process. Earlier on, I spoke about the paramount importance of the need to grow the economy. This means growth in agriculture as well. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, with the tightness in the global food supplies arising from the war in the Ukraine, the world is looking towards parts of Africa with appropriate agronomical conditions to step in and grow more food for export. The markets are there. Our Government has already secured market access to the EU, United Arab Emirates (UAE), South Africa, and China for various crops and livestock such as cattle and goats.

Madam Speaker, it is in that vein that in 2023, the Government is set to aggressively revive the development of farm blocks. This time, we must get it right and it is going to be right. The main objective is to promote diversification, sustainability and jobs in the agri-food sector in the country, especially for exports.

Madam Speaker, a farm block, just to remind ourselves, is a large area of intensive agriculture. Typically, most of them will be between 50,000 ha and 100,000 ha of land. Each block will have one or two core or main ventures which produce a given agricultural product at large scale. The agricultural product may be an input in a processing factory right on site just like we have it at Nakambala Sugar Estate. Along with the core venture, there will be other farms of different sizes, including small scale out-growers also producing for the on-site factory for processing.

Madam Speaker, in advancing the revival of the farm block development, I am confident this will happen because I am pleased to report that we have already as we sit now, secured US$300 million from the World Bank to develop farm blocks such as Nansanga in Central Province, Luswishi in Copperbelt Province and Luena in Luapula Province. This financing is concessional with a maturity period of thirty years and a grace period of five years.

Interruptions

Dr Musokotwane: Madam Speaker, yes, we are borrowing this money ...

Interruptions

Dr Musokotwane: ... on soft terms –

Interruptions

Madam Speaker: Order, hon. Members!

Dr Musokotwane: We are borrowing this money on soft terms to create jobs and make money for Zambia.

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, we are not borrowing this money to buy fire tenders or cameras for the streets.

Hon. Government Members: Hear, hear!

Interruptions

Madam Speaker: Order, order!

Dr Musokotwane: Madam Speaker, the main objective of this programme is to promote diversification, value addition and jobs in the agri-food sector. The massive production on industrial scale that will happen in farm blocks will satisfy the export markets in Africa and beyond as mentioned earlier. Farm blocks will create thousands of jobs in agricultural production, in processing factories and allied services. The jobs are at all levels from engineers, technicians, agronomists, foremen, ordinary labour, accountants, and even lawyers.

Hon. Government Members: Hear, hear!

 

Laughter

Dr Musokotwane: Madam Speaker,  the Government’s task in developing a farm block is to put in the key infrastructure like main access and internal roads, power reticulation, water development for irrigation where feasible, and an administrative centre so that as many approvals as possible are available on site.  So if the farm block is in Nansanga, most of the approvals will be in Nansanga. One would not need to come to Lusaka.

Madam Speaker, with the infrastructure in place, the Government can then invite the best private sector actors from anywhere to invest alongside local investors in the farming operations using their own funds. The provision of infrastructure on the farm blocks is helpful to would be production investors because it enables them to get into production very quickly with little time wasted on preliminaries. It is expected that substantial progress will be made in 2023, as I have just said, to develop some farm blocks. We are ready for the investors. Zambia is back in business.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, as earlier stated, money for farm block development is available and the Ministry of Agriculture is currently evaluating a number of potential sites for development before making the final decision. The Government intends to implement the farm blocks with excellence and then, roll-out the programme to the rest of the country as we gain experience.

Madam Speaker, the livestock sub-sector grew in the first half of 2022. Production of milk, eggs, chicken, beef and pork increased due to the increase in livestock population and improved animal husbandry practices. Notwithstanding the good performance, the sector experienced out breaks of diseases such as the Contagious Bovine Pleuropneumonia (CBPP) and the African Swine Fever. The Government will enhance surveillance, prevention and control. Specific interventions will include the construction of bio-security infrastructure on trunk roads and completion of laboratories. Other interventions include establishment of an animal vaccine plant, promotion of veterinary public health and food safety, and enhancement of animal health research and diagnostics.

Madam Speaker, Government will also develop a robust animal identification and traceability system. This will reduce the levels of stock theft. It will also enhance the country’s potential to export as it will meet the international standards that require identification and traceability of livestock products from farm to the plates.

Madam Speaker, the fisheries sub-sector registered positive performance in the first half of the year. This is attributed to an increase in fish production under both capture fisheries and aquaculture. Capture fisheries increased on account of promotion and enforcement of sustainable fishing methods. The increase in aquaculture was due to the provision of credit to small-scale fish farmers as well as access to inputs such as fingerlings and feed under the Aquaculture Seed Fund.

Madam Speaker, in 2023, the Government will continue to support the aquaculture value chain players through the Aquaculture Seed Fund as well as promotion, and enforcement of sustainable fishing practices in the capture fisheries.

Madam Speaker, to improve service delivery in the fisheries and livestock subsector, the Government will recruit extension officers as well as procure motor bikes, and equipment for the livestock sub-sector.

Madam Speaker, to improve the policy and regulatory framework, the Government will formulate the National Animal Health and National Aquaculture and Fisheries policies. The Government will also review and amend the Animal Health Act No. 27 of 2010 and Animal Identification Act No. 28 of 2010. Further, to provide an enabling environment and promote livestock production and productivity, the Government will develop the Livestock Development Bill. The Government will also reduce the cost of doing business by automating applications and issuance of licenses, permits, certificates and other authorisations through the electronic single window.

Tourism Sector

Madam Speaker, the tourism sector is still recovering from the adverse effects of the COVID-19 pandemic. The number of international tourist arrivals increased to 496,456 during the first half of 2022 compared to 239,885 in the same period last year. This follows the easing of COVID-19 related restrictions.

Madam Speaker, the easing of COVID-19 restrictions has enabled us to host a number of meetings, international conferences and events. Notable among them was the Fourth Mid-Year Coordination Meeting of the African Union, the Eastern and Southern Africa Anti-Money Laundering Group, the Eighth African Federation of Institute of Internal Auditors, and local events such as traditional ceremonies.

Madam Speaker, to stimulate growth in the sector, the Government will continue to bid for hosting of meetings, international conferences and events, going forward. In 2023, Zambia for example, as we keep on biding for conferences, will host the 45th Annual Meeting of the Association of African Central Banks. So, hotels and lodges, get ready.

Hon. Members: Hear, hear!

Dr Musokotwane: We will also continue to promote tourism development by providing incentives to attract more investment in the sector. I will outline specific incentives in Part III of this address.

Madam Speaker, to sustain the current jobs and create new ones in the sector, the Government will invest in infrastructure in the Kasaba Bay area, a growth pole that was abandoned ten years ago by my friends “the PF Members” across there.

Hon. PF Member: Question!

Dr Musokotwane: Madam Speaker, Liuwa National Park and other tourism sites will also receive attention to unlock opportunities for investment. To this end, the Government is in the process of securing US$100 million from the World Bank for these investments.

Madam Speaker, to increase efficiency in processing applications, the Government has introduced twenty-six services for the tourism sector on the Government Service Bus such as Bird Hunting Licence, Hotel Manager Practising Certificate, Casino Licence, and Professional Hunter’s Licence. The Government will also streamline the legal framework by reviewing the Zambia Wildlife Act, the Tourism and Hospitality Act and the National Heritage and Conservation Commission Act. The review will address the challenges of cumbersome regulatory frameworks and uncoordinated procedures among regulatory agencies. In this regard, the Government is piloting the tourism single licence system in Livingstone.

Mining Sector

Madam Speaker, the mining sector continues to be a major driver of the economy, accounting for 17.5 per cent of the GDP and over 70 per cent of foreign exchange earnings in 2021. Production has, however, stagnated at an annual average of 797,000 metric tonnes in the last five years.

Madam Speaker, while our mining output has stagnated, our northern neighbour, the DRC, has not only caught up with our production levels but has gone significantly well ahead of us. Ten years ago, Zambia was producing about 800,000 metric tonnes of copper while that of the DRC was about 400,000 metric tonnes. While we are still at standstill of around 800,000 metric tonnes, DRC has expanded to 1.8 million metric tonnes, which is more than twice our production. All indications are that it will not be long before they hit close to 2.5 million tonnes. So, when to talk about a target of 3 million metric tonnes ourselves, it is very possible. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the stagnation of copper mining in Zambia is a vivid example of what happens when partnership between industry and the Government fails. Zambia has been left behind this potential boom because of the unstable investment climate, especially the frequent arbitrary changes in taxation that reigned in the past decade. This of course, demotivated potential investments. Attaining the 3 million metric tonnes of copper production is very important for the future of our economy. More direct mining jobs will be created. Even more jobs in related and indirect areas such as transport, engineering and many more will be created. It will be a game changer. I am happy to note that some new mines, small as they are, are expected to come into production at Kitumba Copper Project in Mumbwa, Kashime Copper Project in Mkushi and Mwekera Copper Mine in Ndola.

 Madam Speaker, to boost production in the sector, this Administration will avoid the pitfalls of the past decade and will therefore, maintain policy and tax consistency for the sector. This will set the country into a powerful mining expansion drive in pursuit of the 3 million metric tonnes target of copper production in the next nine years.

 

Madam Speaker, already, in recognition of this change in approach, the UPND Government has already managed to secure an investment of US$1.35 billion for the expansion of Kansanshi Project and also, the development of the brand-new Enterprise Nickel Project by First Quantum Minerals. Nickel Mine will be the largest in Africa. So, whereas mining was not expanding in the last ten years, in the next five years, it will be expanding.

 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, as the Government works towards the attainment of the production capacity of 3 million metric tonnes, we are working to urgently resolve the challenges at Konkola and Mopani Copper Mines. It has taken some time to resolve the challenges because of the complex nature of the problems that were left behind. However, a lot of headway has been made and once we conclude, the Copperbelt will once again spring back to vigorous life of work, unity and joy.

Madam Speaker, diversification in the mining sector is gaining momentum. I have just mentioned the Nickel Mine in Kalumbila District which is set to commence commercial production already in 2023. Coal production at two sites in the Southern Province and manganese production in Chipili District of Luapula Province, have also commenced.

Madam Speaker, the Government is also embarking on attracting exploration in the sector as part of the effort towards the 3 million metric tonnes production target. In this regard, private sector capital is being attracted to carryout aerial mapping of mineral resources to unlock the unexploited mining potential.

Madam Speaker, to enhance regulatory oversight in the sector, the Government will establish a mining regulatory institution. Further, the Government has enhanced reporting requirements of production, costs and mineral content. Given the importance of the mining sector to the economy, the Government will enhance its strategic involvement by enhancing its participation through acquisition of golden shares. These measures will enhance participation of Zambians in the mining sector while attracting vital large-scale capital, technology and international experience.

Madam Speaker, to promote artisanal and small-scale mining, the Government will implement measures to formalise their operations and support them with the necessary equipment and training to increase production. The formalisation will also assist artisanal and small-scale miners to access affordable capital and also, to partner with potential foreign investors through joint ventures. Further, the Government will empower Zambians with mining licences, create off take market opportunities and streamline the taxation system.

Madam Speaker, here is something new. The Government will also licence buyers of gold and other precious minerals so that the trade is formalised. So, all these small-scale miners in Lenge and Soli land, who smuggle gold to other places, the buying will now be legalised here in Zambia.

Hon. Members: Hear, hear!

Dr Musokotwane: So, there is no need to be afraid. I will announce a simplified and lower rate tax regime that shall apply to artisanal and small-scale miners in Part III of my address. Let me urge the small-scale miners to take advantage of the simplified regime and formalise their businesses because it is safer for them than operating in the underground economy, where there is mugging and things like that.

Manufacturing

Madam Speaker, manufacturing is critical in stimulating growth and achieving value addition. However, the contribution of the sector, at 9.4 per cent of the GDP in 2021, remains low if we are to attain real economic transformation.

Madam Speaker, the Government will continue to promote Multi-Facility Economic Zones (MFEZs) as a way of expanding the country’s industrial and manufacturing base. The Lusaka South Multi-facility Economic Zone (LSMFEZ) has this year attracted more than thirty companies with a total pledged investment of US$230 million and 4,000 jobs. Construction of production facilities has commenced for six companies while twenty-one companies are awaiting approval from the Zambia Environmental Management Agency (ZEMA). The Government has also facilitated the establishment of MFEZ in Kalumbila to promote mining and non-mining linked manufacturing for both the Zambian and the Congolese markets.

Madam Speaker, with this, Kalumbila will become an industrial city, grounded on supporting the mining industry. In addition, real estate development will be undertaken in Kalumbila so that there is orderly urbanisation as Kalumbila shifts from being a small town to becoming a city. On the Copperbelt, the Government is promoting the manufacturing of electric car batteries.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, a fertiliser company has commenced operations in Chilanga District with an investment of US$138 million. At full capacity, the company will produce 700,000 metric tonnes of Compound D and 300,000 metric tonnes of Urea per annum. This investment has already created 300 jobs for our people, which will increase to 600 jobs when fully operational. This investment will not only result in national self-sufficiency in fertiliser but will also improve reliability of fertiliser supply and save the country much needed foreign exchange. In other words, it will not be long before we stop importing fertiliser in the country. 

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to improve the business environment, the Government reviewed the Zambia Development Agency Act, which is the principal legislation to promote trade and investment in the country. The review has led to the subsequent development of two Bills namely, the Zambia Development Agency Bill and the Investment, Trade and Business Development Bill. The Zambia Development Agency Bill provides for the administrative and operational matters of the agency while the Investment, Trade and Business Development Bill provides for the promotion of trade, investment and business development. The two Bills are currently under consideration by this august House.

Madam Speaker, to enhance the contribution of manufacturing, I will, in Part III of this address, announce measures to stimulate growth in the sector.

Small and Medium Enterprise Development

Madam Speaker, SMEs make significant contribution to production, employment and income generation for the majority of our people. SMEs represent over 90 per cent of all businesses in the country and are the largest employer.

Madam Speaker, the growth of SMEs is largely constrained by lack of affordable finance, market access and inadequate business development skills. To ensure that SMEs access affordable finance from financial services providers, the Government will continue to empower them through CDF and the Citizens Economic Empowerment Commission (CEEC).

Madam Speaker, once the administrative teething problems of CDF have been overcome, SMEs throughout the country, will have a lot of business building schools, teachers’ houses, clinics, and constructing water wells, among others. On top of this, CEEC has developed seven empowerment products valued at K365 million, targeting citizens, SMEs and co-operatives.

Madam Speaker, to facilitate access to affordable loans by SMEs from financial institutions, we have increased budgetary allocation to the Zambia Credit Guarantee Scheme. BoZ is also collaborating with stakeholders to provide credit guarantee for SMEs. The scheme will commence in 2023 on a pilot basis. Further, co-operating partners have provided a US$20 million Loan Guarantee Scheme for SMEs through the financial sector.

Madam Speaker, to contribute to increased market access for SMEs, the Government is implementing the Zambia Agri-Business and Trade Project with the World Bank. The principal objective of the project is to link emerging farmers and agri-business SMEs to larger markets. This is being done by structuring support for off-take opportunities.

Energy Sector

Madam Speaker, a stable and sustainable energy sector is critical for fostering growth in the economy. The Government will, therefore, continue to undertake reforms in the sector to make it more viable and supportive to the economic transformation agenda.

Madam Speaker, to enhance efficiency in the fuel supply chain, the Government has withdrawn from the importation and supply of petroleum products. This business will now be undertaken by the private sector. This will not only provide business opportunities to Zambians to take part in the sector and create jobs, but it will also lower the transaction costs because middlemen will be eliminated. The role of the Government will be limited to that of being a regulator and ensuring cost reflective pricing. In addition, the Government will ensure the maintenance of strategic reserves.

Madam Speaker, to improve efficiency in the petroleum sub-sector, the Government is in the process of converting the Tanzania Zambia Mafuta (TAZAMA) pipeline from a petroleum feedstock carrier to a carrier of finished products, particularly, diesel.

Mr Kampyongo: Question!

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, this will reduce the cost of transporting diesel in the country, which is currently brought in by expensive means through trucks. A pipeline is cheaper. In this regard, the Indeni Petroleum Refinery Limited will no longer process feedstock, but will play other roles in the petroleum supply chain.

Madam Speaker, in the electricity sub-sector, the country has achieved a surplus in electricity generation capacity of 1,156 MW.

Mr Kampyongo: PF!

Dr Musokotwane: You abandoned it. It was not functioning.

Hon. Government Members: Hear, hear!

Laughter

Dr Musokotwane: This follows the coming on board of the 600 MW generation capacity at the Kafue Gorge Lower Hydro Power Station. This has enabled the country to increase exports of electricity to the Southern Africa Power Pool worth over US $100 million during the first half of this year. Maamba Collieries will also be engaged to increase generation to 600 MW to improve the energy mix. In other words, load shedding for now is bye, bye.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to facilitate export of power to the East African region, the Government is in the process of securing financing to complete the remaining in-country circuits for the Zambia-Tanzania Kenya interconnector.

Madam Speaker, the aspiration of the New Dawn Administration is to provide access to electricity to all Zambians. In this regard, the Government has continued implementing the Rural Electrification Master Plan (REMP) which targets to electrify 1,217 rural growth centres by 2030. So far, 525 rural growth centres, representing 43.1 per cent have been electrified. In 2023, the Government will significantly increase the allocation to the rural electrification programme to accelerate the electrification of more rural growth centres.

Transport and Logistics

Madam Speaker, the transport sector plays an important role in economic growth. It facilitates commerce and trade in goods and services as well as the movement of people. In this regard, the Government has prioritised the development and maintenance of transport and logistics.

Madam Speaker, in the road sub sector, there is a lot of outstanding work to be done. To overcome the limitations imposed by scarce financial resources, roads with good traffic volumes will be undertaken using the Public Private Partnership (PPP) mode. In other words, the private sector will fund the roads and get their money back through the toll fees. Many of the roads are already at the stage of final negotiations with potential partners, and some work is likely to start this year, and then progress into the next year and beyond. These roads under PPP include, the Lusaka/Ndola Dual Carriageway, Chingola/Solwezi, Ndola/Mufulira, Chingola/Kasumbalesa and Lumwana/Kambimba roads, which will link Zambia with Kolwezi in DRC.

Madam Speaker, further, the Government will maintain, rehabilitate and upgrade critical economic roads. The Government will also rehabilitate and maintain rural roads across the country to improve access to communities using the Zambia National Service (ZNS) that will be re-equipped. I also appeal to my fellow hon. Members of Parliament and their councils, where appropriate, to invest into road maintenance equipment for fixing rural roads. CDF has been enhanced and therefore, their capacity to do this is there. 

Madam Speaker, to improve efficiency and reduce time spent at the borders, the Government will construct and upgrade access to and infrastructure at key border posts. These include the Sakania, Chalwe, Mokambo, Kambimba, Kipushi, Katima-Mulilo, Mpulungu, Chanida, Mwami, and Nakonde. The roads leading to Namafulo and Zombe will be rehabilitated. In addition, pontoons will be stationed at Luangwa in Feira, and Namafulo.

Madam Speaker, the Government will expedite the establishment of the Kazungula Bridge Authority in collaboration with the Government of Botswana. The authority will manage the bridge and associated infrastructure to foster regional trade and operationalise the 24-hour working schedule at the border.

Madam Speaker, to enhance transport by air, the Government will commence the upgrading of aerodromes, such as Kasama.

Hon. Government Member: Hear, hear! Tell them!

Interruptions

Dr Musokotwane: Yes, which they failed to do.

Madam Speaker, to enhance transport by air, the Government will commence the upgrading of aerodromes. The improvements at these aerodromes will promote tourism and trade in the country.

Madam Speaker, in the rail sub-sector, the Government is in discussion with our neighbouring countries to improve the rail network to facilitate trade in the region. This is in recognition of the critical role rail transport plays in transforming and developing our country.

Information and Communication Technology Sector

Madam Speaker, Information and Communication Technology (ICT) is pivotal in socio-economic development and employment creation as it cuts across all sectors. ICTs are also vital for enhancing trade through provision of Electronic Commerce (e-Commerce) platforms as well as deepening financial inclusion.

Madam Speaker, to accelerate the development of a digital economy, the Government will implement the National Digital Transformation Strategy and review the Information and Communication Technology Act No. 15 of 2009. This will create an enabling environment for uptake of digital services by enhancing opportunities for investment in infrastructure and use of digital platforms. Further, Government will formulate policies to encourage the uptake of ICTs by persons with disabilities.

Madam Speaker, the Postal Services Act No. 22 of 2009 will also be reviewed to adequately address the current challenges with courier services. The objective is to stimulate and ensure fair competition in the provision of postal and courier services.

Madam Speaker, the New Dawn Government has recognised science, technology and innovation as catalysts for development. In this regard, the Government is reviewing the existing legislation to create an enabling environment for the adoption and application of science, technology and innovation. This will improve development planning, electronic communication, data collection, environmental management and agricultural production.

HUMAN AND SOCIAL DEVELOPMENT

Madam Speaker, investment in human capital is critical to stimulating growth and improving livelihoods. Therefore, investment in education, skills, health and water and sanitation as well as social protection is essential if we are to attain meaningful development.

Education and Skills Development

Madam Speaker, education and skills development is a powerful vehicle for reducing intergenerational poverty and inequality. It also increases productivity and sets a foundation for sustainable growth.

Madam Speaker, allow me to tick the checklist of the promises we made to this august House last year in my Budget Address regarding education and skills development.

First, was the provision of free education up to Grade 12. This, we have achieved ...

Hon. Government Members: Hear, hear!

Dr Musokotwane: ... through the elimination of tuition, Parent Teacher Association (PTA) and examination fees, resulting in overwhelming enrolment.

Madam Speaker, second, was the recruitment of 30,000 teachers. This, we have achieved, not only 30,000 but 30,496 teachers recruited. As we speak of these 30,496 teachers, so far, 27,645 teachers have been placed on the ayroll and are receiving their salaries.

Hon. Government Members: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, those few who are remaining, we will just wait for them to complete their arrival formalities and they will be put on the payroll

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, third, was the provision of bursaries for vulnerable learners. Again, this, we have achieved by making these resources available using the CDF.

Madam Speaker, the Government will continue to implement measures to improve the quality of education. In 2023, 4,500 teachers will be recruited but on top of that, there are teachers who have been stagnant for years. They have been acting senior teachers, deputy head masters and head masters for decades. This was so because there was no money to pay them in the upper positions. In 2023, we are resolving this problem.

Hon. Government Members: Hear, hear!

Interruptions

Madam Speaker: Order!

Dr Musokotwane: Madam Speaker, as we hire priority of course will be given to the rural areas which are more deprived. Further, while we have made significant headway in teacher availability, challenges remain in the sector. The problem of teachers shunning remote areas and earning salaries designated for remote schools while actually not being there, is a problem that we need to address. The curriculum also needs to change to include courses on financial literacy and anti-corruption, among others.

Madam Speaker, the curriculum must make education responsive to skills needed of industry, as well as investing in ICT infrastructure, and use of innovative methods of delivering education.

Finally, as many hon. Members will agree with me, many of our schools are not adequately supervised and inspected to ensure adherence to standards. In 2023, we are providing money specifically for ensuring, without fail, that schools are visited by standards compliance personnel.

Hon. Members: Hear, hear!

 

Dr Musokotwane: Madam Speaker, to increase access to education, the Government will next year complete the construction of fifty-six Early Childhood Education Centres.

Madam Speaker, you may be aware that there are many high schools, some going as far back as 2010, as Hon. Mabumba remembers about the Libonda High School, which were abandoned midstream in the past twelve years.  The Government will embark on completing the 115 secondary schools in 2023.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Further, the Government will commence the construction of 120 new high schools with the support of the World Bank.

Madam Speaker, with regard to tertiary education, the Government will establish polytechnics to increase access to skills training for the youth. The Government will in 2023, commission the Lundazi, Nsumbu and Mporokoso trades training institutes, Hon. Mundubile.

Hon. Government Members: Hear, hear!

Interruptions

Madam Speaker: Order!

Dr Musokotwane: Madam Speaker, last year, the Government undertook to provide technical skills to youths in each constituency. It was envisaged that in time, the graduates from the skills colleges would be the ones to be contracted to undertake CDF projects in their areas for jobs –

Mr Kampyongo walked out of the Assembly Chamber.

Interruptions

Madam Speaker: Order!

Dr Musokotwane:  ... so that in each constituency, the construction of classroom blocks, teachers’ houses, among others, will be under taken by the children of that constituency or area who have graduated from the colleges, local people being turned into local contractors. I am happy to report that this programme has made progress and some youths have already graduated. District Councils are being encouraged to link them with on-going contract work under CDF so that they deepen their practical skills before they can be contractors in their own right. Going forward, new intakes will be admitted and this training scheme will continue.

Madam Speaker, Government will continue to modernise the Technical Education, Vocational and Entrepreneurship Training (TEVET) institutions with state-of-the-art training equipment through the skills development fund. Focus will also be directed towards the rehabilitation of workshops, building capacity of trainers, reviewing curricula and syllabi as well as upgrading the level of training offered by institutions.

Madam Speaker, this is also important. You may recall that last year, we made an undertaking to revisit the issue of meal allowances.

Hon. Government Members: Hear, hear!

Madam Speaker: Order!

Hon. Members, let us pay attention.

Dr Musokotwane: Madam Speaker, you may recall that last year, we made an undertaking to revisit the issue of meal allowances to improve the welfare of our students in public universities who are on loan scheme. I can now confirm ...

Hon. Government Members: Hear, hear!

Dr Musokotwane: ... that meal allowances will be reintroduced in 2023.

Hon. Government Members: Hear, hear!

Health

Dr Musokotwane: Madam Speaker, health is wealth. We cannot stimulate growth without investing in the health of our people. The Government will continue to improve the provision of quality healthcare services through recruitment of health personnel, infrastructure development and provision of drugs and medical supplies.

Madam Speaker, the Government has fulfilled its promise of recruiting more than 11,000 health personnel. So far, 8,563 health personnel have been placed on the payroll and the remaining ones, once again as soon as they complete the arrival formalities, they will be put on the payroll. I am delighted to inform this august House that in 2023, the Government will recruit an additional 3,000 health personnel.

Hon. Government Members: Hear, hear!

Interruptions

Madam Speaker: Order!

Dr Musokotwane: Madam Speaker, to ensure a resilient healthcare system and attain universal health coverage (UHC), the Government has increased allocations for the purchase of drugs and medical supplies. This will result in improved availability of essential medicines and medical supplies. In addition, the Government will equip and re-equip health facilities with modern medical equipment.

Madam Speaker, to improve access to healthcare facilities, the Government will complete the construction of a specialised hospital in Lusaka for women and children. In addition, thirty-six district hospitals, sixteen mini-hospitals and eighty-three health posts will be completed across the country. We will also commence the construction of the second phase of mini-hospitals with equity and not one sided. Rehabilitation and maintenance of health facilities will also be undertaken.

Water and Sanitation

Madam Speaker, to increase access to clean and safe water and sanitation services, the Government will accelerate the competition of construction and rehabilitation of water supply and sanitation infrastructure. To enhance hygiene in public places such as markets and bus stations, the Government will commence the construction of waterborne sanitation infrastructure across the country at these facilities.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, the Government remains committed to providing clean and safe water for our people. In this regard, Kafulafuta Dam Project on the Copperbelt is expected to be completed in 2023, connecting water supply to over a million households in Masaiti, Luanshya, Mpongwe, Ndola District. The Lusaka Water and Sanitation Project in Matero, Hon. Sampa, and industrial area, will also be completed in 2023.

Madam Speaker, other water and sanitation projects which are ongoing, include the Integrated Small Towns Water Supply and Sanitation Programme in Nakonde and Mpika Districts, Transforming Rural Livelihoods in the Western Zambia, Nkana Water and Sanitation Project, Chipata Water Supply and Sanitation Project, and the Zambia Sanitation Project on the Copperbelt.

Madam, the Government launched the Zambia Water Investment Programme to increase access to clean water and sanitation services, especially in the rural areas. Development partners will be engaged to mobilise resources to finance the programme.

Social Protection

Madam Speaker, in addition to the good news I have just mentioned, this afternoon, I have a few more in the area of social protection to tell the House.

Hon. Government Members: Hear, hear!

 

Dr Musokotwane: Madam Speaker, firstly, the Government will continue to scale up and enhance social protection programmes with improved targeting and selection mechanisms to uplift the well-being of the vulnerable. To this end, the Government has scaled up the SCT programme by increasing the number of beneficiaries and the transfer value. As at July 2022, the number of beneficiaries rose to 973,323 from 880,539 in August 2021. By the end of this year, the number of beneficiaries will increase to 1,021,000.

Hon. Government Members: Hear, hear!

Dr Musokotwane: In 2023, Madam, the number of beneficiaries will rise to 1,374,500.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Secondly, Madam Speaker, the Government will continue providing education grants for girls in SCT beneficiary households under the Keeping Girls in School (KGS) initiative. Thirdly, the Government will continue with the Food Security Pack Programme and the Public Welfare Assistance Programme.

Interruptions

Dr Musokotwane: Fourthly, Madam Speaker, if my hon. Colleagues can listen, you will recall that for many years, people were waiting for up to three years to access their terminal benefits under the PSPF. I repeat. You will recall that for many years, people were waiting for up to three years to access the terminal benefits under the PSPF. Going forward, Madam Speaker, not anymore.

Hon. Government Members: Hear, hear!

Dr Musokotwane: I am pleased to inform this august House that we are now meeting pension obligations as they fall due. You retire today, three months later, which gives time for your papers to be processed, you get paid your terminal benefits.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Dr Musokotwane: Madam Speaker, this is what we call walking the talk.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, now that we are current with the PSPF...

Interruptions 

Madam Speaker: Order, hon. Members!

Dr Musokotwane: ... beginning 2023, the Government will focus on reducing the waiting period of the pensioners under the Local Authority Superannuation Fund (LASF).

ENVIRONMENTAL SUSTAINABILITY

Madam Speaker, to promote green growth, the Government will promote sustainable management of the environment, ecosystems and natural resources. To this end, climate change mitigation and adaptation will be strengthened through the development of climate resilient infrastructure.

Madam Speaker, in collaboration with co-operating partners, we will continue implementing projects aimed at sustainable management of the environment through projects such as Transforming Landscapes for Resilience and Development, the Zambia Integrated Forestry Landscape Programme, and Strengthening Climate Resilience of Agriculture Livelihood in Agro-Ecological areas.

Madam Speaker, concern has been raised about the rate of deforestation. This reflects lack of transparency in the exploitation of our forestry resources and poor returns to the loggers for the timber when they sell it. In a quest to increase the value for loggers, the Government will, in 2023, commence the setting up of timber exchanges, which will enable many buyers and sellers meet in one place at pre-announced times. These exchanges will provide better transparency. With many buyers available, it is anticipated that our timber will fetch better value. The first exchange is targeted for Nangweshi in Sioma District. Its location in a timber producing area along an excellent highway to the sea port in the south and availability of accommodation makes it an attractive location for the purpose. When this first timber exchange is successful, more will be opened up.

Madam Speaker, the Government will extend and enhance coverage of early warning systems to facilitate preparedness and prompt response to adverse weather events. A total of 120 automatic weather stations will be installed across the country in 2023, in addition to the 120 installed this year.

Madam, to enable the participation of project developers in the carbon market through the United Nations Framework Convention on Climate Change (UNFCCC), the Government signed a green growth compact worth £1 billion with the UK Government. This will facilitate Foreign Direct Investment (FDI) from the United Kingdom (UK) in renewable energy, urban planning and trade connectivity, among others.      

Madam Speaker, to support low carbon development pathways, the Government is pursuing innovative sources of financing such as green bonds. In this regard, the Government has developed guidelines and listing rules for green bond trading. Further, we have commenced sensitisation among potential green bond issuers and investors across the country. Additionally, we are undertaking development of a pipeline of potential development projects to be financed through green bonds. I will be announcing incentives to support the development of the green bond market in Part III of my address.

Madam, carbon trading has emerged as a promising source of financing, while contributing to addressing the global challenge of climate change. In this regard, the Government is developing legislation to regulate the carbon market in line with the Kyoto Protocol on climate change.         

GOOD GOVERNANCE ENVIRONMENT

Madam Speaker, the New Dawn Government is committed to the fight against corruption and building strong governance systems. The Government will, by the end of this year, publish the Governance Diagnostic Assessment Report. The assessment will identify the main governance weaknesses and corruption vulnerabilities as well as measures to address them.

Madam, the Government will also implement fiscal debt management, monetary external sector policies that will stimulate growth and improve the livelihoods of our people. The Government undertakes to adhere to transparency and accountability in the management of public resources. To demonstrate our commitment to these reforms and fight against corruption, the Government will increase funding to the law enforcement agencies and oversight institutions.  

Fiscal Policy

Madam Speaker, fiscal policy is anchored on the 8NDP objective of attaining fiscal sustainability and creating a platform for inclusive growth. In 2023, the focus will be on improving the fiscal position by reducing the overall deficit to 7.7 per cent of the GDP from the projected 9.8 per cent in 2022. To attain this objective, the Government is strengthening compliance and administrative capabilities to generate more revenue while keeping the tax policy environment stable and predictable.

Madam, the Government will focus on containing public expenditures within sustainable levels. This will be achieved by ensuring strict adherence to priority projects, doing away with wasteful subsidies and improving procurement procedures. The Government will also curb the accumulation of new arrears by enforcing the use of the commitment control system for procurement of goods and services.       

Domestic Revenue Mobilisation

Madam Speaker, revenue mobilisation will focus on strengthening compliance and improving trade facilitation. To enhance compliance, the Government will implement the following measures: 

  1. use of Electronic Fiscal Devices. The Government will expand the use of electronic fiscal devices with enhanced functionalities to all eligible taxpayers and shall be extended to turnover tax and the gaming and betting industry;
  2. interface of Government Systems. The Zambia Revenue Authority (ZRA) tax online system will be interfaced with the Integrated Financial Management System (IFMS) and the Land Management System; and
  3. mandatory Verification of Tax Liabilities. The Government will make it mandatory for all public bodies to verify with the ZRA any tax liabilities and withhold amounts owed to the ZRA before making payments to suppliers of goods and services.

Madam, to improve trade facilitation, the Government will implement the following measures:

  1. border Management and Trade Facilitation. The Government will fully operationalise the Border Management and Trade Facilitation Act. This will include the implementation of the co-ordinated border management concept that will streamline the number of regulatory agencies stationed at the border to six from the current maximum number of eighteen. The remaining agencies at borders must ensure that there is orderliness, cleanliness and efficient service delivery;
  2. Zambia Electronic Single Window. The Government will accelerate the linking of the other agencies that will not be operating physically at the borders to the single window. This will enable them perform their regulatory functions remotely; and
  3. Electronic Cargo Tracking. The Government will implement the electronic cargo tracking system to curtail transit fraud.

Debt Management

Madam Speaker, the country is under debt distress. This means that we are unable to meet our debt obligations as they fall due. As I have already indicated, the Government has secured an extended credit facility arrangement with the International Monetary Fund (IMF) which will anchor the debt restructuring process under the Group of Twenty (G20) Common Framework for debt treatment. To this end, the Government is engaging all the creditors to negotiate and agree the terms and conditions of the debt restructuring.

Madam, successful debt restructuring will create fiscal space to enable us to provide support to developmental programmes and also to spend more on those of our people who are vulnerable. In this regard, I wish to acknowledge the support of all our co-operating partners and creditors in securing the extended debt facility. I, therefore, request all creditors to work with us to quickly conclude the debt restructuring.

Madam Speaker, to show our commitment to prudent debt management, the Public Debt Management Act No. 15 of 2022 was enacted already in August this year. This Act has strengthened public debt management as well as enhanced transparency and accountability. It has also enhanced parliamentary oversight on public debt contraction. The Government will, by the end of this year, finalise the regulations.

Public Financial Management

Madam Speaker, to straighten fiscal controls and governance, the Government is developing a Public Financial Management Strategy for the period 2023 to 2026. The overall objective of the strategy is to enhance its internal controls in the payroll system, improve functionality of the Integrated Financial Management Information Systems (IFMS) and improve the coverage and timeliness of financial reporting.

Madam, in 2020, the Government enacted a new Public Procurement Act and regulations to enhance public procurement. However, new challenges have emerged, such as procurement delays, which require further review of the law and attendant processes.

Madam Speaker, to enhance commitment controls, the Government will ensure that ministries register purchase orders and other financial commitments in the IFMS. This will facilitate the link between procurement commitments and the Budget to curtail the accumulation of arrears.

Madam, to improve efficiency of the non-tax revenue collection and service delivery to the public, the Government will integrate various ICT systems to the Government Service Bus platform to facilitate data matching and workflow. Further, an additional 100 services from twenty institutions will be automated and introduced into the platform. This will bring the total number of public services on the bus to 362 by the end of 2023. To mitigate revenue leakages, payments for public services will be made through electronic channels.

Madam Speaker, in line with our decentralisation agenda, more resources are going to go to local authorities.       

Hon. Government Members: Hear, hear!

Dr Musokotwane: This necessitates the strengthening of good financial governance in local authorities by enhancing internal controls and timely reporting. To achieve this, the Government will develop the Local Government Financial Management System. In addition, all local authorities currently on activity-based budgeting will migrate to output-based budgeting systems in 2023.

Madam, to enhance internal controls in the management of the payroll, the Government will introduce workflows on the Payroll Management and Establishment Control (PMEC) system aimed at segregating duties. The Government will also decentralise management of the payroll to the respective controlling officers. This is meant to address incidences of ghost workers and other payroll anomalies that result in loss of funds by the Government.

Decentralisation

Madam Speaker, the Government, in this year’s Budget, significantly increased CDF. So far, K3 billion, representing 75 per cent of the allocation has been released. However, utilisation has been unsatisfactory as less than 10 per cent of the released amount has been utilised. The underutilisation has been due to administrative challenges such as highly centralised approval processes required under the law, cumbersome procurement procedures, and limited capacity in project preparation, among others.

Madam, to address these challenges, the Government will amend the Constituency Development Fund Act to streamline the approval processes and give more decision-making powers to the local communities.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, we have realised that while we decentralised funds, we did not decentralise the decision-making processes. This will change. Further, guidelines relating to the management of the CDF Budget will be simplified, while capacity building and awareness in communities will also be undertaken.

Madam Speaker, I am happy to inform the nation and the hon. Members that the Treasury will not recall any unutilised funds.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Dr Musokotwane: Madam Speaker, let me repeat. I am happy to inform the nation that the Treasury will not recall any unutilised funds under CDF by the end of this year. Our expectation is that all constituencies will continue with project selection and procurement in line with the CDF guidelines.

Madam, from 2024 allocation to the CDF, we propose that we will take into account population, poverty levels of each constituency, and disbursement will be based on utilisation. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: It will be done in 2024 so that we have time to review and discuss.

Interruptions

Mr Kampyongo: Where is equity?

Madam Speaker: Order!

Let us listen.

Public-Private Partnership

Dr Musokotwane: Madam Speaker, on Public-Private Partnerships (PPP) –

Hon. Members: Water!

Dr Musokotwane drank water.

Hon. Members: Hear, hear!

Madam Speaker: Order, order!

Hon. Members, order! Let us listen.

Dr Musokotwane: Thank you, Madam Speaker. In these times when financial resources are limited, and yet the need for infrastructure remains critical, PPP approaches are an alternative source of financing for key developmental projects without over-burdening the fiscus. To enhance the effectiveness of PPPs, the Government will bring a Bill to repeal and replace the Public Private Partnership Act. Later in my address, I will announce specific incentives to make PPPs more attractive for private sector participation.

Madam, to further strengthen collaboration between the public and the private sector, the Government launched the Public Private Dialogue Forum (PPDF) with the support of co-operating partners. This forum will provide an opportunity for the Government to interact with the private sector and provide practical solutions to the challenges hindering private sector growth. This underscores the Government’s conviction that the private sector has a pivotal role to play in our economic transformation agenda.

Public Investment Management

Madam Speaker, to ensure value for money in public investments, the Government will strengthen capacity in public institutions to develop projects and undertake appraisals. Public investment projects will undergo appraisal and only viable ones will be included in the public investment plan. This will serve as a basis for prioritisation of projects for inclusion in the Budget.

Madam, to enhance efficiency in the development of public investment projects, appraisal and information management, the Government is developing a Public Investment Management (PIM) information system.

Monetary and Financial Sector Policies

 

Madam Speaker, to stimulate growth and improve the livelihoods of our people, the Government will continue to pursue policies aimed at maintaining price and financial system stability. Monetary policy will therefore continue to rely on the forward-looking framework anchored on the policy rate as a key signal for the policy stance.

Madam Speaker, with regard to financial stability, the focus will be on strengthening the macro prudential function to limit disruption in the provision of financial services. To this end, the BoZ will operationalise the Financial Stability Committee in accordance with the Bank of Zambia Act No. 5 of 2022. The Committee, will among other responsibilities, formulate policies aimed at maintaining overall stability of the financial system.

Financial Inclusion

Madam Speaker, the level of financial inclusion at 69.4 per cent is still low. The Government will, therefore, step up efforts to increase financial services to unserved and underserved areas particularly among the rural population. To this end, the Government is developing the 2023 to 2027 National Financial Inclusion Strategy which will provide interventions to increase financial inclusion. 

External Sector Policies

Madam Speaker, the Government will maintain a flexible exchange rate regime while mitigating excessive volatility. To cushion the economy against external shocks, accumulation of international reserves will be enhanced through increased export earnings and promotion of sustainable foreign investment flows. The Government will also enhance the compilation of balance of payments statistics through the full operationlisation of the electronic balance of payment monitoring system.

State-Owned Enterprise Management

Madam Speaker, the Government is concerned about the performance of state-owned enterprises (SOEs) commonly known as parastatals. In this regard, the Government is developing a SOE policy to strengthen their governance and improve their performance. The policy will also provide a framework for conducting periodic assessment of SOEs to ensure appropriate interventions. Stronger governance is also required because of some questionable investment decisions that were made by SOEs. In particular, cash-rich SOEs shall not be allowed to buy businesses that are of no strategic value or being made to buy existing businesses where the vendors of those businesses believe that the only one who can buy their business at an exorbitant price is a parastatal. That will not be allowed.

Gaming and Lotteries

Madam Speaker, the gaming and lotteries industry has grown over the years. Despite this growth, the regulatory framework is fragmented, thereby, hindering the smooth oversight and collection of revenue from the industry. To address this, the Government is in the process of developing the gaming and lotteries policy that will facilitate the harmonisation of the various pieces of legislation governing the industry.

PART III

2023 BUDGET

Madam Speaker, the Government proposes to spend K167.3 billion or 31.4 per cent of the GDP. To support this expenditure, K111.6 billion or 20.9 per cent of the GDP will be raised as domestic revenue, K1.7 billion or 0.3 per cent of the GDP as grants from co-operating partners and K54 billion or 10 per cent of the GDP as financing. Accounting for amortisation of K13.1 billion or 2.5 per cent of the GDP financing translates into a fiscal deficit of 40.9 billion or 7.7 per cent of the GDP.

Madam, I now present details of the proposed expenditure, revenue and the borrowing plan for the 2023 Budget.

2023 EXPENDITURE BY FUNCTIONS OF THE GOVERNMENT

General Public Services

Madam, I propose to spend K66.2 billion or 39.5 per cent of the Budget on the General Public Services function. Of this amount, K30.5 billion will go towards domestic debt service, while K18.2 billion is for external debt service. The allocation towards the debt service does not take into account the debt restructuring and will be subject to change once agreement is reached with the creditors.

Hon. Government Members: Hear, hear!

Dr Musokotwane: We appeal to our creditors to support us so that together, we can quickly conclude the debt restructuring.

Madam Speaker, to accelerate the dismantling of arrears owed to various suppliers of works, goods and services, I propose to increase the allocation to K6.8 billion from K3.1 billion this year. In other words, the allocation for arrears dismantlement is doubling from what it was this year. The increase is in line the Government’s strategy to dismantle arrears and unlock liquidity in the economy.

Madam Speaker, to support the operations of the local authorities in the delivery of public services, I propose to allocate K1.3 billion to the Local Government Equalisation Fund (LGEF).

Economic Affairs

Madam Speaker, to stimulate economic growth and improve the livelihoods of our people, I propose to spend K35 billion or 20.9 per cent of the Budget on economic affairs. I propose to spend K11.2 billion on various interventions in the agriculture, fisheries and livestock subsectors in line with the Comprehensive Agriculture Support Programme (CASP). The programme will provide farming inputs, enhance extension services, improve market access, finance to famers and develop irrigation systems.

Madam Speaker, I, therefore, propose an allocation of K9.1 billion for farming inputs, K789.5 million for extension services, including the procurement of motorbikes, extension kits, electronic tablets, and rehabilitation of camp houses across the country. I also propose to spend K426.6 million on farm block development and irrigation to reduce dependency on rain-fed agriculture and support agriculture activities all year round. Further, I have allocated K52.7 million for the recruitment of at least 500 extension officers ...

Hon. Government Members: Hear, hear!

Dr Musokotwane: ... in the livestock, fisheries and agriculture subsectors.

Madam Speaker, I propose to K274.4 million on animal diseases control. This will facilitate the procurement of animal vaccines as well as the construction of an animal vaccine plant at Balmoral in Chilanga District.

Madam Speaker, to scale up economic activity, I propose to spend K5.2 billion on construction, maintenance and rehabilitation of various roads across the country. I also propose to allocate K355 million for the upgrade of aerodromes which I spoke about earlier on.

Madam, I propose to allocate K150 million towards the improvement of border infrastructure in various parts of the country. This will facilitate trade and reduce the cost of doing business.

Madam, I propose to increase the allocation to CDF to K4.4 billion, an increase of K400 million from this year’s allocation. This means that each constituency will now get K28.3 million.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Hon. Government Members: Repeat!

Madam Speaker: Order!

Dr Musokotwane: Madam, I have been told to repeat. So, I will repeat.

Hon. Government Members: Hear, hear!

Dr Musokotwane: I propose to increase the allocation to the CDF to K4.4 billion, an increase of K401 million from this year’s allocation. This means that each constituency will now get K28.3 million.

Hon. Government Members: Repeat!

Madam Speaker: Order, hon. Members!

Dr Musokotwane: Madam, to address the challenges faced by communities, especially in the rural areas, priority will go to improving water and sanitation at health and education facilities, procurement of schools desks, electrification of schools and hospitals, and provision of maternity services, at all health centres. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, it is our resolve that by the end of our first term in office, no learner will sit on the floor.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, every health facility across the country should have a maternity ward with reticulated water. By that, I mean that at every health centre, at every school, there should be a borehole, a solar pump and a tank so that people can access water not by carrying it like that but by opening a tap.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Dr Musokotwane: Madam, to accelerate rural electrification, I have doubled the allocation to the Rural Electrification Programme to K743.6 million. This will support the development of local businesses and create employment opportunities in rural constituencies as they respond to the increased demand for goods and services under the CDF.

Madam Speaker, to promote local and international tourism, I propose to spend K366.3 million on tourism marketing and infrastructure development. This amount will carter for the upgrading of tourism infrastructure in various places, including Kasaba Bay, Liuwa and several others. The funds will also be used to enhance the visibility of Zambia as a tourist destination.

Madam, to continue supporting entrepreneurship development, especially among the youth and women, I propose to spend K397 million on the citizen economic empowerment programmes. I have also allocated K150 million to the Zambia Credit Guarantee Scheme (ZCGS) to support micro small and medium enterprises access to financial services.

Hon. Government Member: Honourable, koseni.  

Laughter

Madam Speaker: Order, order!

Hon. Members on my right, order!

Dr Musokotwane: Madam Speaker, I propose to allocate K50 million towards the support of artisanal and small-scale miners to enable them access the necessary equipment. This will increase the participation of our citizens, especially the youth and women, in the sector.

Education

Madam Speaker, I have allocated K23.2 billion or 13.9 per cent of the total Budget to the education function. The allocation reflects the Government’s continued commitment to facilitating the empowerment of our people with the knowledge and skills necessary to fight poverty and illiteracy.

Madam Speaker, I think you recall that there were many high schools that were left uncompleted, like Libonda High School that I mentioned earlier on. This year, for all the schools in the country, we are providing K1.5 billion for constructing, rehabilitating and completing ongoing school infrastructure, including those primary schools which were declared by word of mouth.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the primary schools which were declared by word of mouth that “From now onwards you are a high school” but no additional infrastructure was constructed, those will also be sorted out within this amount.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, K358.4 million is for what I said earlier on, recruitment of additional teachers and also, upgrading of teachers who have been stuck at various levels for decades. This money will sort out that problem. 

Madam Speaker, in light of the high premium that this Government places on education, I have allocated K930.2 million for the Higher Education Loans and Scholarships Board (HELSB). I am pleased to state that this allocation will carter for student bursaries and the reintroduction of the student meal allowances ...

Hon. Government Members: Hear, hear!

Dr Musokotwane: ... in line with the promise.

Madam Speaker, earlier on, I also said that schools had not been inspected or visited by school inspectors, the so-called standards officers now. To make sure that this is done without fail, I have put aside K40 million specifically to ensure that every school in the country is inspected every year.

Health

Madam Speaker, I propose to spend K17.4 billion or 10.4 per cent of the Budget on health to improve the provision of quality health. Of this amount, K4.6 billion has been allocated for the procurement of drugs and medical supplies, representing an increase of K1.2 billion or 35.7 per cent from this year. I have also allocated K1.1 billion for the construction, completion and rehabilitation of health facilities across the country. A further K900 million has been allocated for the procurement of medical equipment and ambulances, an increase of 383 per cent from K186.4 million this year. This is in response to the unjustifiable challenges that our people continue to face in accessing basic services such as x-rays, which have often resulted in loss of lives. This intervention will not only prevent loss of lives but will also minimise the stress that our people experience in seeking medical attention.

Madam Speaker, recruitment in the health sector must continue. I, therefore, propose to spend K307. 5 million on the recruitment of 3,000 additional health personnel.   

Hon. Government Members: Hear, hear!

Housing and Community Amenities

Dr Musokotwane: Madam Speaker, to improve the provision of safe and clean water, adequate sanitation and decent housing, I propose to spend K2.6 billion or 1.5 per cent of the Budget on Housing and Community Amenities. Of this mount, K2.3 billion is for various water supply and sanitation projects, including the construction of water dams and boreholes across the country.

Public Order and Safety

Madam Speaker, to promote public order and safety, I have allocated K5.2 billion or 3.1 per cent of the Budget. The allocation is for operations, construction and rehabilitation of infrastructure, as well as recruitment of 2,000 police officers.

Hon. Government Members: Hear, hear!

Social Protection

Hon. Members: Water!

Dr Musokotwane drank water.

Madam Speaker, we value our people, especially the vulnerable. In the 2022 Budget, I allocated K6.3 billion towards social protection. For 2023, I propose to increase the allocation by 29.1 per cent to K8.1 billion. Of this amount, K2.4 billion is for payment of arrears under the PSPF. In other words, you retire, you get paid. K300 million is for retirement benefits under the LASF.

Madam, with these allocations, the Government will remain current with pension obligations under the PSPF. We will also clear the backlog of the arrears under LASF up to the end of December 2021. Currently, arrears date back to December, 2018.

Madam Speaker, to support the vulnerable in our society, I propose to increase the allocation to the SCT programme by 19.8 per cent to K3.7 billion from K3.1 billion this year. I have further allocated K1.2 billion for the Food Security Pack to support the vulnerable but viable farmers and K133.5 million towards the KGS programme.

Environmental Protection
Madam Speaker, to promote sustainable environmental and natural resource management across the country, I propose to allocate K1.1 billion to the environmental protection function. These funds will be used to implement various projects and programmes aimed at strengthening climate change adaptation, resilience and mitigation. Regarding the proposed first timber exchange in the country at Nangweshi, I propose to spend K70 million.

Other Functions

Madam Speaker, I propose to allocate K8.6 billion to the functions of Defence and Recreation and Culture and Religion. Of this amount, K165 million has been allocated for the purchase of various sports equipment.

Mr Nkandu: Hear, hear!

Laughter

Dr Musokotwane: Of this amount, K165 million has been allocated for the purchase of various sports equipment as well as support to the football national teams and other sports disciplines.

Madam Speaker, I now go to the area which many of us do not like. We like spending money, but of course we must raise the money. Please, do understand that this money we are raising, we are not spending it on ourselves. It is not for buying flash cars. It is not for things like that. It is money that we are taking from you and giving it back to you so that your children go to school, and your nephews can have clean water. So, we are taking it from you and giving it back to you. So when there are tax increases, please do understand.

Interruptions 

REVENUE ESTIMATES AND MEASURES

Resource Envelope for the 2023 Budget

Dr Musokotwane: Madam Speaker, to meet the proposed expenditure, the Government expects to raise K167.3 billion. Of this amount, K111.6 billion will come from domestic revenue, out of which K93.6 billion will be tax revenues, while K18.1 billion will be non-tax revenues. Grants from co-operating partners will be K1.7 billion.

Madam, the balance of K54 billion will be financing. This will be raised in accordance with the Annual Borrowing Plan as provided for under Section 8 of the Public Debt Management Act No.15 of 2022. Of this amount, K15.6 billion will be domestic and K38.4 billion will be external financing.

2023 TOTAL RESOURCE ENVELOPE

Revenue Measures

Madam Speaker, I now present the 2023 revenue measures.

Direct Taxes

Madam Speaker, to mitigate the cost of living for our people, I propose to increase the Pay-As-
You-Earn (PAYE) threshold to K4,800 per month from K4,500.

Hon. Government Members: Hear, hear!

Dr Musokotwane: In addition – Remember what I said. We are paying for the school fees of the children, we are providing for the water, and we are giving you the CDF. So, a lot of money is coming to you.

Hon. Government Members: Hear, hear!

Hon. Opposition Members: Question!

Madam Speaker: Order, order!

Dr Musokotwane: Madam, in addition, I propose to adjust the tax bands and reduce the rate in the second band to 20 per cent from 25 per cent. The measure will add 21,509 more workers to those who do not currently pay this tax on account of being below the PAYE threshold. The measure will also increase disposable income for salaried households by K1 billion.

Madam Speaker, to strengthen the administration of PAYE, the Government will enforce legal provisions for employers to submit employees’ Taxpayer Identification Numbers (TPIN) in their monthly returns.

Madam, I also propose the following concessions:

  1. increase tax credit for persons with disabilities to K600 per month from the  current K500 per month;
  2. abolish the current two-tier taxation system in the telecommunication sector, which provided for 30 per cent tax on profits of up to K250,000 and 40 per cent on profits above K250,000, and replace it with a single tax rate of 35 per cent;
  3. introduce a threshold on turnover tax and rental income at K12,000 per annum to be taxed at zero per cent and the balance at the applicable turnover tax rate. This measure exempts income of K1,000 or less per month from the turnover tax bracket;
  4. reduce income tax rate for the lapidary and jewellery facilities in the gemstone industry to 25 per cent from 30 per cent to promote value addition and attract more investment. You can see that there are many tax concessions. The aim is to attract more production;
  5. reduce presumptive tax to 15 per cent from 25 per cent on land-based betting companies. I also propose to reduce withholding tax on winnings from gaming and betting to 15 per cent from 20 per cent. These measures are aimed at improving compliance for the industry and will be for the charge years 2023 and 2024;
  6. remove 20 per cent withholding tax on re-insurance, including retrocession to support the growth of the local insurance industry;
  7. exempt from withholding tax interest income earned on green bonds listed on the securities exchange in Zambia with maturity of at least three years to encourage investment in projects with environmental benefits;
  8. remove the 15 per cent withholding tax on investment income on life insurance funds to encourage individuals to save or take out investment products with a life insurance component;
  9. reduce the rate of withholding tax to zero per cent from 15 per cent on interest earned by individuals from loans advanced by members under the savings groups such as co-operatives and village banking. In other words, if you have a co-operative or something like that, the income that you earn, which was previously attracting 15 per cent tax is now zero;
  10. increase the threshold for the allowable expenditure incurred in the construction of employee housing to K100,000 from K20,000 to encourage the provision of accommodation for employees of the farming entity and any other employer; and
  11. extend the local content allowance at the rate of 2 per cent, for income tax purposes to encourage value addition to tomato. This is in addition to mango, pineapple and cassava.

Madam Speaker, the total revenue loss from these concessions to give back to business and reinvest is K1.06 billion.

Madam, I also propose the following revenue generating measures:

  1. increase property transfer tax rate to 7.5 per cent from 5 per cent;
  2. extend the turnover tax regime to service providers in the gig economy. This measure is aimed at improving tax compliance for small businesses in the digital economy; and
  3. replace the current corporate income tax regime with a presumptive tax for artisanal and small-scale mining. The presumptive tax will be based on the gross turnover less mineral royalty paid at the applicable turnover tax rate.

Madam Speaker, the total gain from revenue generating measures under these direct taxes is estimated at K196.9 million.

Value Added Tax

Madam Speaker, I propose the following concessions under Value Added Tax (VAT):

  1. zero rate the supply of milk cans and milking machines to encourage the growth of the dairy sub-sector and promote utilisation of appropriate milk handling equipment;
  2. zero rate the supply of selected Information and Communications Technology (ICT). Many of you have complained about telephone towers, saying that the towers have been constructed but the equipment is not there. So, to encourage more investment in those final products, we are providing this concession so that those towers get equipped;
  3. exempt from VAT, gaming, betting and lotteries to simplify the taxation of this industry and to align it with international good practice; and
  4. exempt from VAT, game animals imported as breeding stock to encourage purchasing of breeding stock.

Madam, the total loss from these concessions is estimated at K3.1 million.

Madam Speaker, I propose the following revenue generating measures:

  1. Standard rate the supply of petrol and diesel effective midnight tonight. This measure is intended to redirect resources from the relatively well-off to create the money I was talking about to give to our children so that they can go to school. So, later today, the Energy Regulation Board (ERB) is going to announce the new price of fuel. The price that will be announced tonight already includes the tax that I am talking about. Once again, I appeal to you; this is the money to give maternity wards to your mothers;

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Dr Musokotwane: Madam Speaker, I also propose to:

  1. Standard rate selected energy saving appliances and equipment to rationalise the zero-rated supplies for VAT purposes;

Madam, the total gain from revenue generating measures under VAT is estimated at K6.8 billion.

Madam Speaker, goods imported by the Republican President are currently zero-rated. This means that the President does not pay VAT on imports that are subject to VAT. As a demonstration of our commitment to ensure that every citizen pays a fair share of tax, I propose to standard rate goods that are subject to VAT at importation. In other words, even goods imported by the President are now subject to VAT.

Hon. Government Members: Hear, hear!

Customs and Excise     

Madam Speaker, agriculture remains a key driver for poverty reduction in our economy. To promote productivity in the sector, I propose to remove customs duty on the following:

  1. biological control agents used in agriculture;
  2. crop growing media called peat moss used in the production of vegetable seedlings; and
  3. selected tree crop seedlings.

Madam, to encourage investment in various sectors, I propose relief on customs duty for a period of three years on the following:

  1. selected equipment for the music and film industry;
  2. selected ICT and telecommunications equipment;
  3. refuse compactor trucks, skip loader vehicles, road sweepers and skip bins;
  4. equipment for baling waste;
  5. prefabricated housing units;
  6. greenhouse plastics used in agriculture; and
  7. selected machinery, equipment and articles used in aquaculture. Again, you can see that we are trying to lessen the cost of doing business so you can expand and employ more of our youths.

Madam Speaker, I propose other concessions as follows:

  1. suspend 15 per cent customs duty on imported Automated Teller Machines (ATMs) for a period of one year to improve efficiency in the provision of financial services:
  2. remove 15 per cent customs duty on gas cylinders to make the use of liquefied petroleum gas affordable to safeguard the environment and diversity the energy mix;
  3. reduce customs duty on electric vehicles to 15 per cent from 30 per cent. This is intended to encourage the use of eco-friendly motor vehicles. In addition, this will reduce heavy dependence on fossil fuels;
  4. reduce customs duty to 15 per cent from 25 per cent on bicycles. This measure will directly benefit our people who rely on this mode of transportation; and
  5. reduce excise duty on methylated spirit to 60 per cent from 125 per cent to harmonise the excise duty rates on methylated spirit and ethyl alcohol.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam, the total revenue loss on concessions under customs and excise is K379.7 million.

Madam Speaker, I propose the following revenue generation measures under customs and excise:

  1. reinstate the excise duty on petrol and diesel effective midnight tonight;
  2. increase carbon emission surtax by 10 per cent and introduce excise duty at the rate of 15 per cent on various plastic articles to promote the green environment;
  3. increase specific excise duty on cigarettes to K361 per mille from K355 per mille;
  4. increase specific excise duty on unmanufactured tobacco, tobacco refuse, smoking tobacco, whether or not containing tobacco substitutes, and water pipe tobacco to K361 per kg from K355 per kg;
  5. introduce excise duty on electronic cigarettes and cartridges at the rate of 145 per cent;
  6. introduce  surtax at the rate of 5 per cent on imported polyvinyl chloride (PVC) pipes and high-density polyethylene (HDPE) pipes; and
  7. introduce surtax at the rate of 5 per cent on imported coal and increase surtax on imported floor and wall tiles to 20 per cent from 5 per cent to support local production.

Madam, the total gain on revenue generating measures under customs and excise is estimated at K2.2 billion.

Incentives to Stimulate Growth

Madam, remember we are talking about the Budget that will stimulate growth and create jobs. To stimulate growth and improve the livelihoods of our people through unlocking of investment in various sectors, I propose to introduce the following tax incentives:

Mining Sector

Madam Speaker, as I explained earlier, Zambia’s mineral production has stagnated around 800,000 metric tonnes per annum, while our neighbour, the Democratic Republic of Congo (DRC), which was behind, has gone way above us, more than twice. To ensure increased production and reclaim our position as the continent’s top copper producer, we need to attract more investment in the mining sector through creation of a conducive environment.

Madam, it is with this objective that I propose to restructure the mineral royalty regime with respect to copper. The tax will now apply on the incremental value in each adjusted price band as opposed to the aggregate value when the price crosses the respective price threshold. I further propose to reduce the lowest marginal rate to 4 per cent from 5.5 per cent. The revenue loss from this measure is estimated at K2.8 billion, which of course, will be regained as we expand production, and of course, to stop the mining industry from collapsing as we saw in the last ten years.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, I also propose to reduce property transfer tax to 7.5 per cent from 10 per cent on mining rights held by exploration companies to encourage more mining exploration. As we speak right now, there is a lot of exploration in our neighbouring countries and Zambia is losing out. 

Hon. Government Members: Hear, hear!

Hon. PF Member: Question!

Public-Private Partnership

Dr Musokotwane: Madam Speaker, to address the infrastructure deficit while relieving pressure on the Treasury, I propose tax incentives to attract Public-Private Partnership (PPP) infrastructure investment as follows:

  1. the tax payable by a Special Purpose Vehicle under the PPP shall be reduced by 20 per cent for the first five years that the project makes a profit;
  2. allow a Special Purpose Vehicle to claim wear and tear on a straight line basis at an accelerated rate up to 100 per cent. This is in respect of any implement, plant and machinery acquired and used by the project for the purpose of that project;
  3. remove customs duty and exempt from VAT at importation, plant, machinery and equipment acquired for use in a project; and
  4. allow a Special Purpose Vehicle to claim input VAT, where applicable, before the commencement of commercial operations. The revenue loss for this is minimal.

Tourism Sector

Madam Speaker, to stimulate growth in the tourism sector, I propose to suspend customs duty on imports of selected fixtures and fittings, capital equipment, machinery and safari game viewing vehicles. This incentive will only apply on items that are not locally produced. These measures will be effective for a period of three years up to 31st December, 2025. The revenue loss from these measures is estimated at K60.4 million and is meant to assist our hotel industry which suffered the most under the Coronavirus Disease 2019 (COVID-19) time so that they can recapitalise.

Madam, to facilitate an increase in tourist arrivals, I propose to waive visa requirements for tourists from the United Kingdom (UK), the United States of America (USA), Canada, Norway, Australia, China, Japan, South Korea, the Gulf States and the European Union (EU). This measure will take effect from midnight tonight.

Hon. Government Members: Hear, hear!

Agro-Processing

Dr Musokotwane: Madam, to attract investment into corn starch processing, I propose to introduce income tax concessions for fifteen years on income generated from local sales of corn starch by agro-processing businesses operating in the Multi-Facility Economic Zones (MFEZ), industrial parks, or rural areas as follows:

  1. zero per cent income tax for charge years 2023 to 2033;
  2. 50 per cent relief on corporate income tax for charge years 2034 to 2036;
  3. 25 per cent relief on corporate income tax for charge years 2037 to 2038; and
  4. zero per cent withholding tax on dividends declared on profits for charge years 2023 to 2033.

Madam, currently, there is no domestic production of corn starch and, therefore, the revenue loss is minimal.

Manufacturing Sector

Madam Speaker, to promote out grower schemes, foster forward and backward linkages, value addition and job creation, I propose to suspend excise duty on locally produced clear beer from cassava to 5 per cent from 10 per cent. In other words, we are encouraging cassava production to expand in Luapula, the Western and the North-Western provinces so that they feed the beer brewery factory. 

Madam, in addition, I propose to suspend excise duty on locally produced clear beer made from malt to 20 per cent from 40 per cent. These measures will apply to the production levels over and above the specified threshold for a period of three years and will come into effect in the last quarter of 2023. This measure will have minimal revenue loss.

Improving Business Environment

Madam Speaker, to further enhance an enabling environment for the private sector to grow and reduce the cost of doing business, I propose to revise the basis on which Environmental Impact Assessment (EIA) fees are charged from the value of the investment to a graduated pollution-based classification charge. The revenue loss from this measure is estimated at K20.5 million.

Tax Amnesty on Penalties and Interest

Madam Speaker, to provide relief to individuals, businesses and other entities following the adverse effect of COVID-19, the Government will implement a Tax Amnesty Programme on all penalties and interests accumulated up to 30th September, 2022 and will cover all taxes.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the programme will also provide amnesty to non-compliant taxpayers to regularise their tax affairs, appropriately register and make correct declarations without penalties and interests.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, detailed guidelines regarding the modalities of the amnesty programme will be published. 

Madam Speaker, the amnesty will run from midnight tonight to 31st March, 2023. I, therefore, urge taxpayers to take advantage of this initiative before the penalties and interests are reinstated on 1st April, 2023. Thereafter, enforcement will be stepped up.

Non-Tax Measures

Madam Speaker, to encourage the growth of courier services, I propose to reduce the upfront licence fees for domestic courier operations to K10,000 from K15,000 and for local courier operations to K5,000 from K10,000. I also propose to reduce current fees for selected services that are offered by the Patents and Companies Registration Agency (PACRA).

Madam Speaker, I propose to revise upwards various fees for services provided under the Department of Co-operatives to make them more cost reflective.

Madam Speaker, the net revenue impact of non-tax measures is a minimum loss.

Madam, in summary, the total revenue gain from the measures I have proposed is K9.2 billion, while the revenue loss is K4.3 billion, which will give us a net revenue gain of K4.9 billion.

House-Keeping Measures

Madam Speaker, to update, strengthen and remove ambiguities in certain provision of the tax laws and make tax administration more effective, I propose to amend the Income Tax Act, the Property Transfer Tax Act, the Customs and Excise Act, the Value Added Tax Act, and the Local Government Act, among others.

Madam Speaker, all the measures I have outlined, unless otherwise stated, will take effect on 1st January, 2023.

Hon. Government Members: Hear, hear!

Conclusion

Dr Musokotwane: Madam Speaker, as I conclude, …

Hon. Members: Hear, hear!

Dr Musokotwane: … I wish to state that the New Dawn Administration is delivering on its promises.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, our promise to fix the economy is on course. Growth is rebounded. Budget credibility has been restored. Inflation has been lowered and the exchange rate has stabilised. Of course, concrete steps are being taken to finalise the restructuring of the debt that we inherited.

Hon. Government Members: Hear, hear!

 

Dr Musokotwane: Madam, education is no longer a preserve of the rich because our promise of free education is now a reality. We promised to take resources closer to the people, and we have truly done so. In 2023, we are even increasing. Our citizens are now determining their own priorities and we give them money to attend to their needs.

Hon. Government Members: Hear, hear!

Dr Musokotwane: We promised to recruit teachers and health personnel, and we have done so. Now, we have deployed more than 41,000 of them, with the majority of them already placed on the payroll very quickly.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, Bally is fixing it.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Hon. Members, can we continue listening.

Dr Musokotwane: Madam, education is no longer a preserve of the rich becaue our promise of free education is now a reality.

Hon. Government Members: Hear, hear!

Dr Musokotwane: We promised to take resources close to the people, of course through the CDF. We have done so and in 2023, we are increasing.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Our citizens are now determining their own priorities and they are given money to attend to their needs. We promised to recruit teachers and health personnel, we have done so.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Now we have deployed more than 41,000 of them with the mojoprty already placed on the payroll.

Madam Speaker, Bally is fixing it. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, challenges remain, especially in the areas of jobs, better incomes and roads. The New Dawn Government is determined to confront these challenges with the same methodical zeal that it is known for.

Madam Speaker, the 2023 Budget has clearly outlined how jobs will be created in our special economic zones. We dream of an expanding mining sector leading towards the production of 3 million tonnes and thereby creating thousands of jobs directly and indirectly. Our small scale farmers will continue to be busy as the Government continues to support them.

Madam Speaker, from the farm blocks that we are establishing in 2023 and beyond, jobs and business opportunities will arise as we produce food for the neighbouring countries, the Gulf, China and the rest of the world. As a region with all the correct agronomical conditions, the world is offering us money if we grow food for it. Our farm blocks and farming in general will be the answer to this challenge, thereby create jobs for engineers, agronomists, accountants, mechanics, not forgetting the lawyers.

Laughter

Dr Musokotwane: To realise these dreams, Madam Speaker, our people must take up the business opportunities as they arise. We should also embrace FDI as the Asians did three decades ago, when they were poorer than us but now they are much richer than us. Further, public officials like me and you, hon. Members, must be efficient, honest and quick to facilitate investments because our jobs are actually paid for by the private sector.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, as individuals and as a nation, let us embrace these opportunities. It is, therefore, my duty, your duty, our duty to take centre stage in our development agenda and together, let us move Zambia forward.

Hon. Government Members: Forward!

Dr Musokotwane: Madam Speaker, I beg to move.

I thank you, Madam.

Hon. Government Members: Hear, hear!

Hon. Members rose and clapped.  

Madam Speaker: Order, order!

Let us make progress.

Mr Jamba (Mwembezhi): Madam Speaker, I thank you for giving me this opportunity to be the first one to speak on the Motion of Supply that has just been moved by the hon. Minister of Finance and National Planning.

Madam, firstly, allow me to congratulate the hon. Minister of Finance and National Planning for the able manner in which he has moved the Motion of Supply and presented the 2023 National Budget.

Hon. Government Members: Hear, hear!

Mr Jamba: Madam Speaker, the speech that has just been delivered by the hon. Minister of Finance and National Planning has raised a number of important issues concerning the economy of our country and requires careful analysis by all hon. Members.

Hon. Government Members: Hear, hear!

Mr Jamba: Madam Speaker, I am, therefore, of the considered view that we defer debate on this Motion to Tuesday, 4th October, 2022 so that hon. Members have ample time to read and carefully analyse the speech. This will enable the hon. Members to come back next week well prepared to debate the Motion, meaningfully.

Madam, with these few words and remarks, I propose that the debate on the Motion of Supply moved by the hon. Minister of Finance and National Planning, be deferred to Tuesday, 4th October, 2022.

Madam Speaker, I thank you.

Hon. Government Members: Hear, hear!

Madam Speaker: Order, order!

Mr J. Chibuye (Roan): Madam Speaker, let me also congratulate the hon. Minister for his steadfastness in presenting the Budget to this House.

Madam Speaker, let me also thank you for according me this opportunity to support the proposal by the hon. Member for Mwembezhi, that the debate on the Motion of Supply moved by the hon. Minister of Finance and National Planning, be deferred to Tuesday, 4th October, 2022.

Madam, the hon. Members will agree with me that the issues contained in the Budget Speech have an impact on the lives of the people whom we are privileged to represent in this House. Therefore, we require sufficient time to study the speech.

Madam Speaker, for this reason, I agree with my hon. Colleague that more time is given to the hon. Members to carefully study and analyse the speech which has just been presented so that they can engage meaningfully next Tuesday.

Madam Speaker, I thank you.

Hon. Members: Hear, hear!

Madam Speaker: Order!

Question put and agreed to.

ADJOURNMENT

The Vice-President (Mrs Nalumango): Madam Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

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The House adjourned at 1732 hours until 1430 on Tuesday, 4th October, 2022.

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