Minister of Finance and Economic Affairs Sosten Gwengwe has presented the 2022/2023 national budget estimated at K2.84 trillion, representing 24 percent of the Gross Domestic Product (GDP), up from last fiscal year’s K2.2 trillion.
Total expenditure for the 2022/2023 fiscal year is projected at K2.84 trillion, representing 24.9 percent of GDP of the total expenditure, recurrent expenses are estimated at K2.019 trillion, representing 17.7 percent of GDP and 71.1 percent of the total expenditure.
Development expenditure is programmed at K820.67 billion, representing 7.2 percent of GDP and 28.9 percent of total expenditure. This is an increase from a projected 2021/2022 likely outturn of K540 billion. The development expenditure is composed of K580.9 billion foreign resources and K239.7 billion domestic resources.
Gwengwe said the large increase in development financing is largely in line with Government recovery plan under the Social Economic Recovery Plan (SERP), which outlines the need for front loading of project implementation.
In the budget, the Education sector has received the highest allocation with K462.24 billion. Agriculture has been allocated K447.66 billion, Health has received K283.57 billion and Transport and ICT has got K211.74 billion.
The 2022/2023 overall fiscal balance is estimated at a deficit of K884.0 billion, which is 7.7 percent of GDP. The deficit as a percent of GDP is lower than the projected likely outturn in the 2021/2022 fiscal year although the previous fiscal year was only for 9 months.
“Government has taken a decision to level and flatten this line from this financial year onwards. Government intends to stabilize the debt creation processes and embark on a downward debt trajectory in the subsequent national budgets. The deficit will be financed through foreign borrowing amounting to K230.07 billion and domestic borrowing amounting to K653.98 billion,” explained Gwengwe.
In the new budget wages and salaries are estimated at K670.28 billion. On salary increment for civil servants, the Minister said Government will increase salaries by a magnitude that will be determined after Government consultations with Civil Service Trade Union.
Other allocations in the budget are for Affordable Input Programme, Pensions and Gratuities (K100.9 billion) maize purchases (K12.0 billion) and student loans (K9 billion)
On empowerment of People with Disabilities and Albinism, K100 million has been allocated to the Disability Fund and K300 million for the implementation of the Action Plan for the Protection of People with Albinism.
In addition, K500 million has been allocated under the Ministry of Lands for the construction of houses for people with albinism.
The budget has also seen an increase in Constituency Development Fund from 40 million kwacha to 100 Million kwacha.
