• FINANCE Minister Felix Mutati, flanked by his wife and children, on arrival at
Parliament grounds shortly before presenting the 2018 National Budget in Lusaka yesterday. Picture By CHUSA SICHONE

By JAMES MUYANWA –
THE Government has proposed a budget of about K72 billion for 2018, which translates into nearly 26 per cent of the country’s Gross Domestic Product (GDP).
The K71.6 billion National Budget, which was unveiled by Finance Minister Felix Mutati yesterday, is a K7.1 billion increase on this year’s Budget of K64.5 billion.
Presenting the 2018 financial blueprint for Africa’s second largest copper producer, Mr Mutati said that of the total budget, K49.1 billion or 68.5 per cent would be financed by domestic revenues while K2.4 billion or 3.4 per cent would be by grants from cooperating partners.
The balance of K20.1 billion or 28.1 per cent of the total Budget will be financed through domestic and external borrowing.
The minister said the allocations were targeted at addressing five strategic areas of economic diversification and job creation, poverty and vulnerability reduction, reducing development inequalities, enhancing human development and creating a suitable governance environment for a diversified and inclusive economy.
In terms of expenditure, the Government proposes to spend K25.9 billion on general public services with significant allocations being K7.3 billion and K7 billion for external and domestic debt payments, respectively.
“Mr Speaker, in our resolve to fiscally empower our local authorities and ensure equitable distribution of resources, I have allocated K1.1 billion to the Local Government Equalisation Fund. This represents an increase of 21.5 per cent from 2017 levels,” Mr Mutati said.
A total of K218.4 million to support projects at the community level has been allocated for Constituency Development Fund.
Because of its critical role to development, the economic affairs function has been allocated K17.3 billion or 24.1 per cent of the total Budget.
“Sir, a significant allocation under this function is K8.7 billion for road infrastructure. This will include the continuation of the Link Zambia 8,000, the C400 and L400 projects,” he said.
To complement these efforts, the Government will further undertake significant works to rehabilitate and upgrade feeder roads across the country through the Rural Roads Connectivity Programme.
Mr Mutati said that to improve airport infrastructure in the country, a total of K940.5 million had been earmarked for the upgrading of the Kenneth Kaunda International Airport and construction of the Copperbelt International Airport.
With a target of one million beneficiaries under the Farmer Input Support Programme (FISP), K1.8 billion has been allocated towards the programme, while K1.1 billion will be for allocation of maintenance of strategic food reserves, with a 500,000-tonne storage capacity.
More than K251 million has been allocated for rural electrification.
Mr Mutati said that K11.6 billion would go to the education sector to facilitate spending on infrastructure development, student loans, teacher recruitment and procurement of school requisites.
He said the health sector would get K6.8 billion out of which K1.2 billion would be for the procurement of essential drugs and medical supplies, representing a 56 per cent increase on the 2017’s.
“Sir, I propose to spend a total of K816.3 million on housing and community amenities. Of this amount, K564.5 million is for water supply and sanitation,” the minister said.
Mr Mutati has allocated K2.1 billion towards the maintenance of public order and safety with key areas being the recruitment of security officers, continued rehabilitation and construction of infrastructure.
To reduce vulnerability and inequalities among the people, K2.3 billion has been allocated for social protection-related expenditures.
Defence, environmental protection and recreation, culture and religion will have a combined allocation of K4.9 billion.