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HomeBusinessGovernment Releases over K14.4 Billion for Public Service Delivery

Government Releases over K14.4 Billion for Public Service Delivery

By Felix Katyetye

The Ministry of Finance and National Planning has announced the release of K14.4 billion to support public service delivery.

In a statement shared on MOFNP official Facebook Dr Situmbeko Musokotwane said the allocation released in May, was distributed across various sectors, with a notable emphasis on debt servicing, social benefits and developmental programs.

“A substantial portion of K7.3 billion, was allocated for debt servicing. This included K4.1 billion for external debt payments and K3.2 billion for domestic debt. This allocation underscores the government’s ongoing commitment to reducing national indebtedness,” Dr. Musokotwane said.

He added that the public service wage bill accounted for K3.9 billion of the budget, covering salaries for workers in health, education, and foreign diplomatic missions.

Dr. Musokotwane said K1 billion was disbursed for transfers, subsidies, and social benefits and that specific allocations included K359 million for Grant Aided Institutions (GAIs), K250 million for the Social Cash Transfer Programme, K100.6 million for the Food Security Pack Programme and K291.1 million to support the Zambia Revenue Authority’s operations and domestic resource mobilization efforts.

“Developmental programs and general operations received K1.8 billion with key expenditures including K602 million for programs supported by cooperating partners and K160 million for the procurement of medical supplies,” he said.

Additionally, K328.8 million was dedicated to capital expenditure, ensuring ongoing road infrastructure projects remain on track.
Dr. Musokotwane emphasized the Treasury’s commitment to transformational reforms aimed at optimizing value for money in public service delivery.

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

Additionally, Zambia signed grant agreements with the World Bank, securing US$100 million for the National Energy Advancement & Transformation (NEAT) Programme and US$157 million for the Second Phase of the Girls’ Education & Women’s Empowerment & Livelihoods Project (GEWEL-2) Programme. These agreements reflect international confidence in Zambia’s economic reforms and commitment to addressing challenges exacerbated by drought, which has impacted power and food supplies he said.

Dr. Musokotwane further reaffirmed the government’s resolve to pursue reforms and initiatives aimed at achieving sustainable economic growth and enhanced public service delivery despite the challenging circumstances.

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