By John Chola
The Ministry of Finance and National Planning has released K16.1 billion for January 2025 to support public service delivery, developmental programs, and debt management.
The funds, allocated across various sectors, aim to bolster social welfare, infrastructure development, and economic growth while ensuring fiscal discipline and accountability.
Key Allocations and Expenditures
A significant portion of the budget, K4.7 billion, was allocated to the public service wage bill.
This includes salaries and allowances for health workers, teachers, security personnel, and diplomats serving in Zambian missions abroad.
The allocation underscores the government’s commitment to maintaining a motivated and efficient public service workforce.
In line with its debt reduction strategy, the government released K3.8 billion to service both domestic and external debts.
Of this amount, K3 billion was allocated to domestic debt service, K459.6 million to external debt obligations, and K335 million to clear outstanding arrears.
This move reflects the government’s efforts to stabilize the economy and restore fiscal credibility.
The Treasury disbursed K4.6 billion for transfers, subsidies, and social benefits, targeting critical sectors such as agriculture, education, healthcare, and social welfare.
Notable allocations include: K1.1 billion for the Farmer Input Support Programme (FISP), aimed at enhancing agricultural productivity and food security.
K713.2 million for school grants to support educational institutions, K639.4 million for Grant Aided Institutions (GAIs) operating in public hospitals and government ministries. K426.1 million for the Constituency Development Fund to finance local projects and K355.5 million for the Social Cash Transfer program, providing financial support to vulnerable households.
A further K333.3 million was released for the Cash for Work Programme, promoting job creation and community development, K312.4 million to address the Public Service Pensions Fund gap, K209.1 million for the Zambia Revenue Authority’s operational grant and K200 million for the Food Security Pack initiative while K152.3 million went to universities, student loans, and scholarships and K120.8 million to the Local Government Equalization Fund, ensuring equitable resource distribution across regions.
A total of K2.7 billion was released to support the implementation of developmental programs and general operations across government institutions. Key expenditures under this line include K228.2 million for operational costs in various government institutions, K200 million for the Sustainable Agriculture Financing Facility, promoting agribusiness and rural development, K193.2 million for compensation and awards.
A K84 million went for geological mapping to support mining and natural resource management, K18.3 million for by-elections, ensuring democratic processes are upheld.
The government also allocated K326.9 million for capital expenditure, with a focus on infrastructure development with notable releases including K49.9 million for road projects, enhancing transportation networks, K277 million for social sector infrastructure, including healthcare and education facilities.
Finance and National Planning Minister, Dr. Situmbeko Musokotwane, emphasized the importance of prudent financial management to achieve developmental goals.
He urged ministries and implementing agencies to ensure funds are utilized as intended, focusing on outcomes such as social welfare, youth and women empowerment, job creation, and infrastructure development.
Dr. Musokotwane also highlighted the recently launched Supervisory and Performance Monitoring Framework for State-Owned Enterprises (SOEs).
The framework, introduced during a meeting with board chairpersons and CEOs of SOEs, aims to enhance governance, operational accountability, and performance evaluation.
Through performance contracts, the government seeks to improve the efficiency and profitability of SOEs, ensuring they meet the expectations of the Zambian people.
The January 2025 budget releases, Dr Musokotwane said, demonstrate the government’s commitment to addressing pressing economic and social challenges while maintaining fiscal discipline.
By prioritizing public service delivery, debt management, and infrastructure development, the Ministry of Finance and National Planning aims to foster sustainable growth and improve the quality of life for all Zambians.
