EconomyLocal News

Govt spends K1.07bn on dismantling debt

By BENNIE MUNDANDO
GOVERNMENT last month paid K1.07 billion towards dismantling both domestic and external debt service in line with its fiscal sustainability and debt reduction implementation strategy.
Ministry of Finance spokesperson Chileshe Kandeta yesterday said last month, the national treasury released a sum of K5.64 billion to finance various developmental and public service delivery programmes.
Mr. Kandeta said of the total amount released, K2.2 billion was allocated to the public service wage bill, K1.1 billion was released for transfers, subsidies and social benefits, while K819.2 million was allocated to finance various government projects, programmes and general operations, among other expenses.
“In March 2020, the National Treasury released a sum of K5.64 billion to finance various developmental and public service delivery programmes. Of this amount, K1.07 billion went towards both domestic and external debt service.
“The K1.07 billion released for both domestic and external debt service is in line with the government’s fiscal sustainability and debt reduction implementation strategy. K2.2 billion was allocated to the public service wage bill.
“K1.1 billion was released for transfers, subsidies and social benefits, K819.2 million on financing various government projects, programmes and general operations, and K437.6 million went to developmental programmes such as roads, rural electrification among others,” Mr. Kandeta said.
He said in the month under review, a sum of K104.7 million was also released for the purchase of drugs in Public Health Institutions and the fight against the COVID – 19 and that under general operations, the Treasury released K819.1 million.
He said cooperating partners released K193.3 million for donor supported programmes under various ministries, provinces and other public service controlling agencies.
He said non-tax revenue collection agencies received K43.6 million under the Appropriation-In-Aid (AIA) mechanism, bringing the first quarter support to this initiative to K144.4 million.
Appropriation-In-Aid is an initiative devised by the Ministry of Finance for non-tax revenue collecting agencies to retain a part of the funds raised through fines, fees, and levies etcetera.
“With regard to the agriculture sector, the Government released K59.6 million of which the Food Reserve Agency received K28 million for grain purchases under the Strategic Food Reserve Programme while K21.6 million went towards the 2019/2020 Farmer Input Support Programme (FISP) and the Food Security Pack Programme received K10 million,” he said.

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