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July gets K11.17 Billion from Treasury

The Ministry of Finance says it released K11.17 billion to finance developmental Programmes and public service delivery in the month of July 2020.
In a statement made available to Money FM News, Secretary to the Treasury Fredson Yamba said out of the total amount, K1.48 billion was for transfer payments, subsidies, and social benefits, of which K585 million went towards the payment of pensioners under the Public Service Pensions Fund and K1.45 billion went to financial and non-financial assets, while K1.2 billion financed various government programmes.
Mr Yamba said for subsidies and agriculture sector social-benefit programmes, the treasury released a sum of K318.5 million of which, K185.5 million was channelled towards the on-going construction of maize-grain storage facilities under the Food Reserve Agency, while K103 million went towards the Farmer Input Support Programme (FISP) to finance activities related to the vulnerable but viable farmers and the least, K30 million was released for the Food Security Pack Programme.
“These interventions, in-tandem with other activities under the community development and social sector umbrella, are key in the Governments drive to empower the rural poor and create sustainable livelihoods for them,’’ he said.
“In July 2020, K593 million was released towards social benefits, of which, K585 million was for the payment of pensioners under the Public service pension fund whilst K8 million went towards Social Cash Transfer programme.”
He said K900 million was released to recapitalize the National Savings and Credit Bank (NATSAVE) and through the capital injection, NATSAVE will meet the minimum capital requirements set by the Bank of Zambia (BOZ) and enable it to access the Bank of Zambia K10 billion Medium Term Refinancing Facility (MTRF) With a clean balance sheet.
“NATSAVE is expected to enhance provision of affordable financing to both SMEs and households and we are confident that through NATSAVE, more SME’s will now access the K10 billion facility from the Bank of Zambia (BOZ).”
Mr Yamba noted that K38.4 million was released to the education sector for existing capital projects.
He added that treasury also released K62.7 million for water and sanitation projects, K34.2 million for the Kafue bulk water project, and K20 million for works under the Millennium Challenge Account Programme.
“The funding of water and sanitation projects is part of the Government’s accelerated response in ensuring that relevant services and amenities are provided in fighting Covid-19, and other health challenges induced by poor water and sanitation facilities,” Mr Yamba explained.
Mr Yamba further said K372.1 million went to road sector infrastructure while K23.5 million was released for development of electricity infrastructure in rural areas through the Rural Electrification Programme.
“In the month under review, the Treasury released K889 million towards transfers and subsidies. Under the transfer’s category, K270 million was channeled towards supporting operations of Grant Aided Institutions such as Road Development Agency which got K9.8 million, Food Reserve Agency K6.3 million, and National Assembly K5.5 million,” he said.
“In addition, K97 million local government equalisation fund was also released to support the operations of local authorities. Further, the Treasury released K79 million for operations of public universities while public hospitals received a total of K52 million.”
The secretary to the treasury further disclosed that in the same month, K437.5 million was released for general operations of Ministries, Provinces, and Agencies while the purchase of essential drugs and medical supplies in Public Health Institutions was allocated K550 million, and court operations under the judiciary got K33 million.
“Other key beneficiaries were Disaster Management and Mitigation Unit which was released K22 million for various Covid-19 related activities and the Zambia Statistical Agency which received K17.3 million to support preparatory activities for the 2020 National Census which is scheduled to begin in some weeks,” he said.
“In line with Governments commitment to reduce indebtedness, a sum of K3.2 billion was released towards the payment of both domestic and external debt,we also released a sum of K281.4 million towards the dismantling of liabilities owed by various ministries and agencies to several suppliers of good and services. Further, K20 million was disbursed to help dismantle liabilities under the compensation and awards provision.”
The Government, in July 2020, spent K3.5 billion on the public service wage bill and in addition, K11 million was channeled towards chief’s subsidies and retainer’s wages.
K74.6 million was released to Zambia Revenue Authority was for operations and domestic resource mobilisation activities.
“Through ZRA, we will strive to mobilise more domestic resources to respond to the various competing developmental needs of the country, including responding to the unprecedented Covid-19 pandemic. This notwithstanding, we will continue to constrain public debt accumulation and endeavour to effectively implement public financial management regulations at all times,” he noted.
In the month under review, Zambia’s cooperating partners contributed K54.5 million to various socio-economic development activities.

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