The Ministry of Finance says Government released K6.73 billion to finance developmental and other public service delivery Programmes in the month of May 2020.
Secretary to the Treasury, Fredson Yamba said K604.92 million went towards transfers, subsidies, and social benefits, K311.13 million was channeled to infrastructure Programmes and rural electrification, while other developmental projects, Programmes, and general operations received K677.39 million in total.
Mr. Yamba said Government also spent K2.86 billion on debt service and dismantling of arrears.
“The release of funds to recipient Ministries, Provinces, and Agencies comes against a backdrop of competing demands and constrained revenue inflows. The world-wide economic downturn, triggered on the domestic front by severe drought in the 2018-2019 farming season, floods in the 2019-2020 season and the ravaging effects of the on-going Covid-19 pandemic, have been the biggest disrupters to the livelihoods of citizens, the well-being of the local production chain, and the performance of domestic revenue sources. Resources are now scarce,” Mr Yamba said.
He added that in line with government’s commitment to debt reduction, a sum of K1.80 billion was released to cater for scheduled domestic and external debt payments explaining that, a sum of K2.28 billion went towards the public service wage bill and a sum of K223.15 million from cooperating partners went towards supporting developmental Programmes in various sectors.
“Nevertheless, our resolve to ensure that Ministries Provinces and Agencies continue to prudently utilize resources has been strengthened by the instruction from President Edgar Chagwa Lungu that the Ministry of Finance and the Office of the Auditor General should further tighten controls in the application and management of public resources. As Treasury, we will ensure that the Presidential directive is implemented to the fullest extent,” Mr. Yamba said.
He also explained the treasury released K858.10 million towards the dismantling of liabilities owed to various suppliers of good and services – in line with the Government’s commitment to unlock liquidity so that our people continue to participate in the economy for the good of all.
Mr Yamba further said K200 million was released towards the dismantling of liabilities owed under the compensation and awards facility.
“In addition, to ensure that we do not betray the trust placed in us by the President to efficiently and effectively manage resources, the Treasury will persistently monitor and evaluate the implementation of austerity measures so that fiscal consolidation targets are met and sustained during this period and beyond. This is an important path as it will help the public sector to continue utilising resources on programmes that advance the country’s developmental programmes, while positively influencing the well-being of all Zambians through sustained resource supply to various social sector programmes,” he explained.