SECRETARY to the Treasury Felix Nkulukusa says K6.2 billion domestic revenue was collected during the month of February 2022, of which K4.8 billion was from taxes and K1.4 billion from non-tax revenues.
And Nkulukusa says government released K3.2 billion towards the payment of domestic and external debt, in order to continue reducing the country’s indebtedness and ensure fiscal sustainability.
In a statement on the 2022 budget performance for the month of February, Tuesday, Nkulukusa said during the month under review, government also released K11.1 billion to finance developmental programmes and public service operations.
“During the month of February, 2022, total domestic revenue collections amounted to K6.2 billion, broken down as follows:1) K4.8 billion from taxes; and, 2) K1.4 billion from non-tax revenues. During the month under review, the Government released K11.1 billion to finance developmental programmes and public service operations. The difference between revenues and expenditures was financed from domestic financing and the International Monetary Fund (IMF) Special Drawing Rights allocation,” he said.
“The Government released a total of K11.1 billion to finance developmental programmes and public service delivery. Of this amount, K3 billion financed the public service wage bill for February, 2022, while K3.2 billion was used to service domestic and external debt, mainly for multilaterals. Further, K1.7 billion was released for transfers (grants) and subsidies, and the balance of K3.2 billion went towards the financing of various government projects, programmes, and general operations.”
Nkulukusa said K2.6 billion was collected in income tax while Value Added Tax (VAT) collections amounted to K1.3 billion.
“Income tax collections amounted to K2.6 billion, mainly driven by the positive performance in Company Tax. Payment of arrears by both mining and non-mining companies led to the overperformance in income tax, whereby: 1) Mining-tax-collections amounted to K349 million. This performance was boosted by payment of arrears by Chambishi Copper Smelter and Maamba Collieries Limited; and, 2) Non-mining-tax-collections amounted to K268 million. The performance was boosted by the payment of arrears by Ndola Energy Company Limited and the offsets done against VAT refunds,” he said.
“Value Added Tax (VAT) collections amounted to K1.3 billion of which Domestic VAT accounted for K317.3 million and import VAT K1.0 billion. In terms of customs and excise duty, K762.3 million was collected – with receipts predominantly from fuel levy, carbon levy, electricity levy and cement levy. Non-tax revenues such as user fees and fines, charges, and mineral royalty contributed a total of K1.4 billion to the revenue basket for February, 2022.”
And Nkulukusa said government further released over K600 million to facilitate payment of retirees’ dues.
“The Treasury also released funds to support the operations of various public institutions. In this regard, public universities and schools, countrywide, received grants totalling K105.9 million. Hospitals got K67 million. Further, the Treasury released K1.6 billion to support the activities and operations of other central government institutions. Of this amount K650 million was for procurement of drugs and medical supplies in public health institutions, K100 million for the Compensation Fund and K65 million for conducting the 2022 Census of Population,” he said.
“We also released K678.1 million to the Public Service Pension Fund to facilitate payment of retirees’ dues. Further, K169.3 million was released for implementation of the Social Cash Transfer Programme. With regard to agriculture subsidies, the Treasury released K500 million to the Farmer Input Support Programme (FISP) for dismantling outstanding bills. This funding brings the total amount released towards the FISP programme in 2022 to K800 million.”
Nkulukusa said government also released K3.2 billion towards the payment of both domestic and external debt.
“In order to continue reducing the country’s indebtedness and ensure fiscal sustainability, the Government released a sum of K3.2 billion towards the payment of both domestic and external debt respectively. In the period under review, K977.8 million was also released for liquidating outstanding liabilities related to previously consumed goods and services under various line Ministries, Provinces and Agencies. Of this amount, K150 million went towards liquidating fuel arrears. We also wish to confirm that K170.6 million was released for capital projects of which K106.3 million was for water supply and sanitation projects while the balance of K64.3 million was for other capital expenditure across the country,” said Nkulukusa.
“K164.9 million was released to support the operations of other public entities and quasi-government institutions. To continue with the effective mobilisation of tax revenue resources, the Zambia Revenue Authority was funded with K208.2 million while K223.2 million went towards supporting the operations of local authorities across the country through the Local Government Equalisation Fund (LGEF). The Government spent a total of K3.0 billion on costs relating to the Public Service Wage Bill and overseas allowances (personal emoluments) in order to ensure the timely payment of February salaries for various public service workers, including teaching, medical and security personnel.”