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2019 Budget Tackles Wide Ranging Issues

Finance Minister Margaret Mwanakatwe unveiled a K86.8 billion budget that translates into 28.9 percent of the Gross Domestic Product for 2019.

The budget marked a significant increase from the 2018 budget that was pegged at K71.6 billion.

Mwanakatwe said   out of the projected budget, domestic revenues will account for 64.6 percent, while 2.2 percent is support from cooperating partners.

The balance of 33.2 percent will be financing from domestic and foreign sources.

“Mr. Speaker, Government proposes to spend K86.8 billion or 28.9 per cent of GDP in 2019,” she said.

Mwanakatwe also announced scaled up efforts on poverty reduction with the social cash transfer receiving a notable injection.

“Sir, Government remains committed to reducing poverty and vulnerability among the economically disadvantaged in society. In this regard, I have allocated K2.2 billion towards social protection,” she said.

“As a demonstration of Government’s commitment towards clearing pension arrears, K1.1 billion of this amount will go towards payment of retirement benefits to former public service workers under the Public Service Pensions Fund.”

On the Social Cash Transfer, she said, “Further, I have increased the Government’s contribution to the Social Cash Transfer from K550 million in 2018 to K699.5 million in 2019. I have also allocated K110.9 million as grants for other social welfare programmes, such as the Food Security Pack and the Public Welfare Assistance Scheme.”

She also announced a 30 excise duty on non-alcoholic beverages.

“Sir, I propose to introduce an excise duty of 30 ngwee per litre on non-alcoholic beverages. The Government will take appropriate fiscal measures to protect local manufacturing of non-alcoholic beverages from unfair competition while discouraging import dependence,” she said.

The Finance Minister also sought to increase benefits from the mineral wealth.

“Increase mineral royalty rates by 1.5 percentage points at all levels of the sliding scale. Introduce a fourth tier rate at 10 percent on the sliding scale mineral royalty regime which would apply when copper prices rise beyond US$7,500 per metric tonne,” she said.

“Make mineral royalty tax non-deductible for income tax purposes. Introduce an import duty at the rate of 5 percent on copper and cobalt concentrates. Introduce an export duty on precious metals including gold, precious stones and gemstones at the rate of 15 percent.”

The 2019 budget also increased support to the agricultural sector.

“Mr. Speaker, to support our small scale farmers, I have allocated K1.4 billion to the Farmer Input Support Programme. I have also allocated K672 million to the Food Reserve Agency for the maintenance of the national food reserve,” she said.

 

“Sir, a further K2.1 billion has been allocated towards other agriculture, fisheries and livestock development programmes across the country. This includes K483.2 million earmarked for the Zambia Small Ruminants Value Chain Support Project, K585.7 million for irrigation development, which will include the upscaling of small scale irrigation projects.”

Mwanakatwe added:  “Other allocations are K277.9 million for the Cashew Nut Infrastructure Development Project and K169.2 million for the Zambia Aquaculture Entrepreneurship Project.”

The education sector got K13.3 billion in 2019 or 15.3 percent of the budget on the skills development aspect.

“Within this amount, I have allocated K601.6 million for university and college infrastructure, while K258.8 million is for the completion and rehabilitation of school infrastructure across the country,” she said.

“Mr. Speaker, under skills development, I have allocated K164.0 million to support Government’s action, in collaboration with the private sector, in building a cadre of qualified personnel in artisan skills that are relevant to the needs of the industry.”

On health, “Sir, I have allocated a total of K8.1 billion or 9.3 percent of the budget to support health service delivery systems across the country. In order to ensure good supplies of medicines in health centres and hospitals, I have allocated K900.1 million.”

“I have also allocated K32.8 million for community health services in order to redress the imbalances between curative and preventive health care. Further,

K620.2 million has been allocated towards the various infrastructure development projects that are currently underway in the sector.”

She further said, “Mr. Speaker, I have allocated K10.7 million towards operationalization of the newly introduced National Health.”

68 Comments

  1. J B

    The budget is just great…..

  2. Sakaji christoher

    Budget of the coming year 2019 is at list 80 % good but coming to imprimentation I don’t know.

    • MWANAKATWE

      problem I referred to the speaker as Mr Loud peaker yaba tujilijili tukola kikikiki

      • Joseph Bwalya Jnr

        Thank Hon.Mwanakatwe for delivering a good
        budget. we hope implementation will follow
        accordingly

    • liwesh

      It’s just gr8

    • Man sk

      The budget is okay,but how much is our debt to other countries, MAMA. We would love to know

  3. Chitalu

    Government to increase allocation on agricultural sector

  4. ONE MUNTU

    Iliche

  5. Rabbi M Kangwa

    The budget is very good kasi we are glowing up in Zambia

  6. Adams 20,21

    we already knew dat 2019 Budget wl b exactly normal

  7. Kaswango

    They are working while fools are keep on talking

  8. Dr. Zimba Emmanuel.

    I’m happy with the budget.

  9. MWILA

    The budget is promising,if well implemented the face of our beautiful country will once again be smooth. I edge the govt not to relax in the year 2019 but ensure that no funds will be unutilized and at the same time be found in an account that is not known by the people who will be the rightful beneficiaries. Ifwakwiba awee

  10. Moses Mushe Mushe

    The budget is just fine hope there will be no some divertion of funds

  11. Joseph

    Thank Hon.Mwanakatwe for delivering a good budget. we hope implementation will follow accordingly

  12. mawema knees

    This is healthy for our country we are indeed growingup as a country

  13. cyrus shella

    Mmmmm the budget is 90% good this goverment is coming into process way to go

  14. Patrick Mvula

    Not bad at-least there is work being done their despite the allegations of corruption in the PF government.keep it up Madam Mwanakatwe,Much regards to his exellency E.C.L

  15. Wellington

    The budget seems okay…we hope it is impremented…

  16. Shumba manda

    Budget z good,economically 64.6% domestic revenues is good move,sign that Zambia is moving on right path .Congrants your honour and Pf gvt

  17. Bruno mars the moonshine jungle master

    The budget is just ok the way it was anounced my worry is on how they are going to use the money,you will see.In Zambia there is nothing good only bunches of crooks

  18. GO

    Well Budgeted On Paper Zambians,but Come To Implementation,theives Are Only Going To Benefit.

  19. kawayo

    Bajeti ili chabe bwino ,windfall yabwera ,impulimetashoni ndiye ivuta pa zambiah ,AUNTY DIZZY NI M,KALI NA MA LOUD SPEAKERS INE EEEEEEEEEEEEEEEEEEEEEEEEH WAPYA MUZI

  20. ESDRAS

    Great budget, I think many public sectors have been included, as good as this budget was made I think there will be no pocketing of money by the officials. Well done madam minister

    • Quest

      Big man can you give an indication if the Zambian Parliament carried it’s over sight roll in the past years

    • Quest

      Big man can you give an indication if the Zambian Parliament carried it’s over sight roll in the past years ago that we can point out

  21. Quest

    Has the Zambian Parliament carried it’s over sight roll

  22. Mr. K

    Hope. Ncz retirees will be paid now

  23. Kalok

    I note with satisfaction the reduction of the donor input to our budget. This is as it should be. However, I would love to unpack the approximately 33% dependence on local and foreign sources. What does that entail?

  24. ba Shanflezo

    not bad but they should have put more in agro

  25. One zed

    This budget looks great hoping implementing it will be followed by our personnel in high offices.if we maintain at this level we can be a better country in the next few years

  26. Farmer

    What budget! Just rhetoric. No implementation! Wastage day in day night through theft. Wither Zambia.

  27. Aaron gadama

    Thus for your budget

  28. White

    Implementation. Let’s change our mindset. For once let’s put interests of the nation first so we secure good economy for generations to come.

  29. Dims

    Good budget
    Eventho the all money wll go to minister s pockets.
    I don’t kno wat fiscal discipline mean to the finance minister or the government in particular.

  30. Joseph Kawele

    Paper budget is always impressive but funding it puts a Zambian in a heavily taxation seat. Accountability is another worrisome area of the day.
    Ministries run unfunded budgets through out the implementation period.
    Thank you!

  31. PHIRI

    Good move

  32. Felix BOWA

    This is incredible,, we are growing mightly .the budget has been well represented. We just hope it will work exactly the way it has said..
    We thank you Minister ..Margret mwanakatwe.

  33. Lingard mandela

    We will see 2021 elections
    This is rubbish after steeling money and you the citizens of this country tivutikilemo

    • Mandela Lingard

      This is rubbish there is no way you can make such a useless budget
      After steeling money and u have no other options on how you will return that money 💰 mmm any way it’s your time ubomba mwibala alya mwibala you just failed to tell the citizens to contribute Yuma k10 so that you pay the debt 2021 is near

  34. Towani

    Well done Honourable Margaret Mwanakatwe for such an excellent budget. And we appreciate that you have only been Finance Minister for a few months! Zambians should now work together to make sure the PF vision comes to reality. Together we Can!

  35. Levite Z

    Mandela,you ar a foreignr,so just shut up.Wena;Ths s not South Africa.Whats wrong with the budget that a fool lyk u can condemn?

    • Brian mutumba

      Nice budget mum but please let transparency be there when implementation comes.We love developments going on but there are also plunderers out there please watch out for they will destroy the image of our hard working president .

  36. FGM

    Serious implementation should be observed on acquisition of medical drugs, timely allocation of school grants, timely release of pension packages to retirees and disbundling of local debts accrued by government. Poverty reduction be enhanced to below 50%. Zambians are truly suffering.

  37. Sibonde

    Not ok,

  38. Ken

    The budget is very good only if it is truly implemented

  39. Ken

    The budget is very good only if it is truly implemented and it should not just end on paper but reach the intended purpose .

  40. Tryson Sikambala

    Quiet Understoond On Agriculture and Education Sectors.

  41. THE GENERAL

    impressed

  42. maston

    The badgent is fine but let us see the emaprematetion it will be?

  43. Tate

    Do the maths: Understanding the 2019 budget.For simplicity imagine a year had ten months and in that ten months K300.28 billion worth of goods and services are produced hence the GDP. If 10 percent of that GDP is extracted every month being K30 billion in ten months it would reach K300.28 billion equal to the GDP annual total. But in reality there are 12 months to a year so the baseline to maximum extraction is 8.3 percent to equal 100 percent of the GDP over 365 days. The 2019 budget of K300.28 billion represents 28.9 percent of the GDP in 365 days giving a tax rate of 2.408 percent per month in a 12 month year to reach K86.9 billion, the figure of the national budget. The 2019 Zambian budget at K86.8 billion represents 28.9 percent of the Gross Domestic Product (GDP). This implies the expected total GDP is K300.34 billion which covers 365 days or the entire 2019. Tax is monthly based so collecting K86.8 billion from K300.34 billion means a extraction rate or tax of 2.41 percent per month which yields per month K7.23 billion per month which when multipled by 12 months to give a year total gives K86.8 billion. Therefore should tax be at 2.41 percent if the K86.8 billion was to be collected within a calender year. However as taxes exceed the 2.41 percent and are above 8.3 percent it implies the budget is collected spent and recollected and re-spent and recollected etc in a cyclical pattern for example every 12 days. This is like Keynesian economics of printing money except it’s recycled. This eats up the real value of the GDP until wages buy little like a bounced cheque as the budget has already spent people’s wages before they earn them. Taxes thus become compounded. Government tax at 30 percent in the first cyclical would extract that value leaving 70 percent. Then in the next cycle another 30 percent is extracted leaving 40 percent. In the next 30 percent extraction it in real terms is facing 40 percent left of the economy and in real value terms is 70 plus percent. Once all the value is extracted of savings, investments of ordinary people, the whole nation government borrows against a “fiscal and economic crisis” as the purchasing power of the Kwacha collapses.

  44. mwale moses

    2019 budget was well presented but my quastion is what will be the percentage on sales tax will it be calculated like vat or will be a percentage on retail price bacause on vat we pay tax between the cost[vat] and the retail[ vat] the difference eg vat on cost is 2 and vat on salling is 3 the difference is 1 so that is 16% of input and out is zra going to use the same methiod

  45. advocater

    well presented ,well targeted but implementation . hope even financial security measures will be tightened .We are praying this budget will be used prudently according to the given department

  46. Black

    Very good but on agriculture sector please do something.

  47. nathan siame

    2019 budget is very good

  48. Truth man

    How much has been allocated for foreign debt servicing. A budget is simply a plan of income and expenditure!In this case the income is from taxes both direct and indirect. The expenditure is what she has outlined she will allocate to the various government sectors. But the big question is how much shall be paid for the loans that Zambia is owing to various donors!i.e. form the same 86.9 billion?Because at the end of the day what remains after payment of debt that’s what can be spent on the humble Zambians!

  49. Vincent

    Budget is OK, but let it be implemented as wise pliz twapapata as Zambians and no delay to give the allowances to the students 2019 to come.

  50. Mark

    Budget ilifye bwino sana am just thinking mu Zambia twaba 15 million budget ili 86 billion ninshi teti Batwakanishishafye 1 million each uwacita misuse lyashi lyakwe

  51. KDG chipata

    Good continued with good spirit of developed in Zambia I like this budget

  52. Shaka

    It’s a very progressive budget but what worries most of us is the implementation.

  53. Sylvester mbalama

    I hope it will work us it is mentioned in the budget, we still waiting……

  54. Andrew Monde

    Good presentations of budget owez but practically its not tricallin on the ground, anyway my concerns are on financing Napsa, paying retirees where does the money go which they collect during a period a person is working? For government to be budgeting for that because I assume money is been collected while working monthly.

  55. Mk

    Very good budget but let’s hope implementation will be OK. People say we are good planners but poor in actions so let’s change that perception now. God bless our leaders as they strive to do their best.

  56. Brian Keegan

    I’m only impressed with the increase from 71.6 to 86.9. for the 2019 budget.

  57. G2

    I pray that the implemention will be as planned in the budget. We will only see the results in 2019 during implementation. Accountability and traspanrancy is what will determine development. Fingers crossed.

  58. Mec

    budget is fine except some gorvement officials who like developing their pockets steeling 4 de country

Comments are closed.