by Joseph Mwenda on 20 Nov 2018by Sipilisiwe Ncube on 20 Nov 2018by Richard Luo on 20 Nov 2018by Mirriam Chabala on 20 Nov 2018
- Goal Diggers
by Alex Chilumbwe on 15 Nov 2018by Alex Chilumbwe on 15 Nov 2018by Musambo Phiri on 11 Nov 2018by Alex Chilumbwe on 8 Nov 2018
by Stuart Lisulo on 19 Nov 2018by Abraham Kalito on 15 Nov 2018by John Chola on 15 Nov 2018by Abraham Kalito on 15 Nov 2018
- Editor's Choice
by Davies Mwila on 20 Nov 2018by Diggers Correspondent on 16 Nov 2018by Professor Geoffrey Lungwangwa on 15 Nov 2018by Davies Mwila on 13 Nov 2018
by Diggers Editor on 16 Nov 2018by Diggers Editor on 15 Nov 2018by Diggers Editor on 14 Nov 2018by Diggers Editor on 13 Nov 2018
by Zondiwe Mbewe on 28 Sep 2018by Tenson Mkhala on 28 Sep 2018by Thomas Mulenga on 24 Sep 2018by Sampa Kabwela on 8 Sep 2018
- Guest Diggers
by CUTS on 16 Nov 2018by CUTS on 16 Nov 2018by Sampa Kabwela on 10 Nov 2018by Diggers Correspondent on 17 Oct 2018
Govt to narrow public service wage bill in 2019 budget projected at K84.6 BnBy Stuart Lisulo on 10 Sep 2018
Government has projected to roll out a K84.6 billion national budget next year expected to be supported by increased tax revenues amounting to around K7.4 billion more than last year’s budget.
And government has proposed to keep debt interest payments to an average K14.4 billion per annum over the medium-term period (2019-2021), and to narrow the public service wage bill with a cut in recruitment.
According to the government’s Green Paper released last week ahead of the 2019 national budget, a total amount of K84.6 billion is expected to be spent in next year’s budget, up from last year’s K71.6 billion.
Tax revenues amounting to a total of K47.5 billion has been projected to support next year’s budget, representing around 15.8 per cent of Gross Domestic Product (GDP), up from K40.9 billion in last year’s budget, while non-tax revenues are expected to marginally climb to K8.4 billion, up from K8.2 billion last year.
According to the Green Paper, availed by the Ministry of Finance, Zambia’s GDP has been projected to grow to over K300 billion next year, up from K277 billion last year.
Total revenue generation expected for next year’s budget is K55.8 billion, representing 18.6 per cent of GDP, up from last year’s K49.1 billion.
Government is also expected to increase spending on personal emoluments next year to a total of around K25.1 billion, up from last year’s K23.1 billion.
And a detailed breakdown of the Green Paper further shows that government intends to keep a lid on debt interest payments to around K14.4 billion per annum over the medium-term.
“Over the past few years, Government had embarked on an expansionary fiscal policy in order to develop public infrastructure such as roads, health facilities and schools, which was largely financed by both external and domestic borrowing, resulting in increased debt service obligations. To this effect, expenditure on interest payments is projected to average K14.4 billion or 22.5 per cent of domestic revenues per annum, over the medium-term,” the Green Paper states.
This projection, however, is in the wake of government’s higher than projected debt servicing costs for the 2018 national budget.
According to policy think tank, the Zambia Institute for Policy Analysis and Research (ZIPAR), debt servicing costs in this year’s budget were projected to be no more than K6.6 billion for the half-year ending June 30, but government ended up with a total debt servicing cost of K9 billion during the sixth-month period.
And data from ZIPAR also reveals that government actually added US$1.3 billion, or roughly K13 billion, to the total debt stock in just a six-month period between January and June this year.
Meanwhile, the Green Paper further states that government proposes to limit the public service wage bill, which typically gobbles around half the budget.
“Expenditure on personal emoluments as a share of domestic revenues still remains high at 47.1 per cent in 2018, thereby, constraining other developmental expenditures. Therefore, over the medium-term, government will ensure that the public service wage bill, as a share of domestic revenues, is narrowed to not more than 40 per cent by 2021,” states the Green Paper.
“This will be achieved by restricting recruitment to only front-line personnel and ensuring that annual wage adjustments are made in the context of the resource envelope. In this regard, a provision of K808.7 million has been allocated over the medium-term to cater for the recruitment of approximately 15,500 front-line personnel.”
About Stuart Lisulo
Stuart Lisulo is an experienced Zambian journalist with a focus on business news.
Email: stuart [at] diggers [dot] news
- Sales Tax to slow down economic growth, say manufacturers - 19 Nov 2018
- Govt orders FRA to give millers maize to avert crisis - 16 Nov 2018
- KCM starts dismantling $80mn debt by paying local contractors - 16 Nov 2018
- ZRA intercepts smuggled Christmas chickens - 13 Nov 2018
- Speed cameras will lower govt’s non-tax collection revenue – KPMG - 12 Nov 2018
- Cops arrest ZANIS reporter for filming HH arrival at Ndola Police
- Police warn, caution HH for seditious practices; no arrest
- Prisons will be full of politicians after 2021, says Kambwili as he narrates State House money scandal
- Police perpetrating confusion - Mweemba
- PF, UPND maintain threats on each other as HH goes to Ndola
Subscribe for email alerts
Weekly Most Digged
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
+26-097-7708285, 095-3424603, 096-5815078
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend