Debt servicing dominates March expenditure, as govt spends K5.1 billion on arrears

Government has called for consistent monitoring of budget execution by all stakeholders in their sectors of interest, as debt dismantling dominate March expenditure.

Finance and National Planning Minister, Situmbeko Musokotwane, has since urged all members of the public, individuals and corporates, to actively participate in the formulation of the 2024 National Budget and the 2024 to 2026 Medium Term Expenditure Framework.

Musokotwane has observed that Zambia’s budget implementation credibility has now been restored as all budgeted programmes are now being funded, considerably.

He disclosed that in March 2023, the government released a total of K15.5 billion to finance public service delivery and of this amount, K5billion was released for transfers, subsidies and social benefits, whilst K5.1 billion was spent on debt service for both domestic and external to dismantle arrears.

“From the K5.1 billion released for debt service and dismantling of arrears, a sum of K2.9 billion went towards both domestic and external debt payments.

“From the K5.1 billion, the component related to dismantling of arrears for suppliers of fuel, goods, and services, got K2.2 billion,” Musokotwane said.

He said K3.6 billion was spent on the public service wage bill and government released K1.3 billion for implementation of various government programmes and general operations, while K534.9 million was spent on road infrastructure.

Musokotwane said Government also released K1.3 billion to facilitate service delivery under various public institutions.

“Under this aspect, notable expenditure items included: K436.7 million for the procurement of drugs, medical supplies and equipment in agencies under the Ministry of Health; K360.4 million for general operations of Ministries, Provinces and Agencies; K43.6 million for TAZAMA workers’ salaries; and, K534.9 million towards road infrastructure,” he said.

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