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The Zambian government has announced plans to increase domestic revenue to at least 21.4 percent of Gross Domestic Product (GDP) as part of the 2025 national budget.
Secretary to the Treasury, Felix Nkulukusa, made the announcement during the 2025 National Budget Symposium held at Mulungushi International Conference Center on Monday.
He also stated the government aimed to reduce the fiscal deficit to no more than 3.1 percent of GDP.
Nkulukusa said the government would revise the State Owned Enterprises Policy to strengthen the regulatory framework and reduce fiscal risks and costs by establishing a fiscal discipline rule in its quest to enhance domestic resource mobilization.
“The framework provides guidelines on financial reporting, borrowing, capitalisation, Board appointments, and dividend declaration, among others,” he stated.
He highlighted that fragmented supervision bodies for State Owned Enterprises within the Ministry of Finance and National Planning and Industrial Development Corporation restricted oversight of their financial situation.
“The most significant fiscal risks with a potential financial impact were attributed to capital injections for State Owned Enterprises with a weak financial footing, including ZESCO,” he added.
“A preliminary evaluation of State Owned Enterprises fiscal risks between 2018 and 2020 estimated annual liabilities amounting to US$3 billion (14 percent of GDP),” Nkulukusa stated.
He emphasized that the 2025 budget was premised on economic recovery and promoting growth, laying a foundation for resilience by investing in the health and education of the people.
“This budget is truly building resilience for inclusive growth and improved livelihoods in a manner that no one is left behind,” he said.
“Promotes investment across critical sectors of the economy such as mining, manufacturing, agriculture, and energy,” Nkulukusa emphasized.
Meanwhile, Dr. Francis Chipimo, the Deputy Governor Operations at the Bank of Zambia, in his presentation, highlighted key tasks set out in the 2025 budget for the Central Bank.
Chipimo stated, “The Central Bank would establish a deposit protection fund to safeguard depositors in the event of insolvency and roll out a Credit Guarantee Scheme to enhance Small Medium Enterprises’ access to affordable finance.”
He also noted plans to “enhance the Export Proceeds Tracking Framework including services and imports, introduce a Bank of Zambia Facility to mitigate the impact of the drought on agriculture and energy sectors.”
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