Minister of Finance proposes K41.9 billion supplementary budget

Minister of Finance and National Planning Hon. Dr. Situmbeko Musokotwane has recommended a K 41.9 billion supplementary budget to the National Assembly of Zambia mostly dedicated to government’s response interventions to the drought. 

Speaking when making his presentation to the National Assembly on Friday, June 21st 2024, Hon. Dr. Musokotwane said that of the recommended K41.9 billion in this supplementary budget, K8.3 billion or 19.8 percent of the revised budget will be dedicated to facilitating Government drought response interventions in an effort to provide life-saving and early recovery assistance to the millions of Zambians affected by this disaster.

Some of the highlights of the supplementary budget include the following;

  • K5.2 billion has been allocated to the Ministry of Community Development and Social Services for the Social Cash Transfer Programme. This allocation to the Social Cash Transfer Programme will facilitate for a top-up of K200 to all the 1.3 million households already enrolled in the existing Social Cash Transfer Programme. This top-up of K200 will ensure that recipients under the existing Social Cash Transfer programme receive a total amount of K400 per month.
  • The Government has proposed to implement a Cash for Work Programme for which an initial amount of K2.0 billion has been allocated. This amount is expected to be increased up to K3.8 billion in 2024 alone after financing procedures and processes are finalised with some of our cooperating partners. At that point, I shall return to this House with a request to augment this allocation.
  • The Government has decided to upscale the School Feeding program from Early Childhood Education to Secondary Education in about 37 affected districts. This will also ensure that our children continue attending classes and not miss school due to hunger and starvation during this period. In this regard, K392.2 million has been allocated over and above the approved budget of K111.7 million in the 2024 budget.
  • K306.6 million has been allocated to the water supply management sector. The proposed allocation will help maintain and rehabilitate dams in the 84 affected districts as well as help Government drill high production boreholes as well as provide the required water treatment chemicals for some water utility companies.
  • Under the livestock and wildlife sector, Government is proposing to spend an additional K460 million to undertake, among others, heightened livestock disease control. This is to ensure that sufficient surveillance and vaccines are provided to curb dry spell-prone livestock diseases.
  • Out of the recommended K41.9 billion in this supplementary budget, an amount of K14.6 billion or 34.8 percent has been dedicated to address the external debt service obligations.
  • K15.2 billion or 36.3 percent of this supplementary budget will be dedicated to the dismantling of fuel arrears which were contracted during the previous administration. As we are all aware fuel was heavily subsidised before 2022 and suppliers were not fully paid by the Government then.
  • The Minister indicated that K17.2 billion of this supplementary budget will be realised through the declaration of savings from existing budget allocations to various Government institutions and departments. This will be raised by cutting costs on things such as workshops, local and international travel as well as other general Government operations.
  • K4.3 billion will come as additional support from co-operating partners in 2024 aimed at addressing the drought situation.
  • K3.8 billion of this budget is from additional revenues that have been realised in the year and were not part of the 2024 revenue estimates. This includes dividends posted by the Bank of Zambia, which were more than earlier projected, as well as some moneys forfeited to the state from individuals and institutions who are believed to have irregularly acquired it.
  • The balance of K16.6 billion is proposed to be facilitated through additional concessional financing using both domestic and external sources. Let me categorically mention that, out of this amount, US$194.5 million is part of the funds expected to come from the International Monetary Fund (IMF) as additional financing specifically aimed at supporting the Country’s response to the drought situation.