BY and large, Government has unveiled a thrift budget that attempts to meet all the expectations of the key stakeholders in the country realise their goals.
On Friday, Finance and National Planning Minister Situmbeko Musokoktwane presented the 2023 budget under the theme “Stimulating Economic Growth for improved livelihoods.”
The proposed K167.3 billion 2023 national budget is equivalent to 31.4 percent of Gross Domestic Product (GDP), according to Dr Musokotwane.
And for the first time in decades, Government has presented a reduced budget size of K167.3 billion to be spent next year in its effort to implement fiscal consolidation, as it banks more on revenue from the tax base which has been broaden.
This budget size presented on Friday by Dr Musokotwane is K5.7 billion smaller than the K173.0 billion budget which was proposed for this year.
One of the highlights of the budget has been the re-introduction of meal allowances for university students with Government allocating K930.2 million to the Higher Education Loans and Scholarship Board that covers meal allowances.
The suspension of meal allowances has been a thorny issue and it is only right that the new dawn administration has brought it back for it was one of its key campaign promises in the run up to the August 12, 2021 tripartite elections.
In what could also earn the UPND points is the increase in the Constituency Development Fund (CDF) from K25.7 million to K28.3 million.
The CDF is a key component of the government’s vehicles to take resources to the grassroots with empowerment programmes designed to benefit citizens at local level.
On revenue measures, Dr Musokotwane proposed to increase the Pay-As You-Earn threshold to K4, 800 per month from K4, 500 as a way of mitigating the high cost of living.
He proposed to adjust the tax bands and reduce the rate in the second band to 20 percent from 25 percent.
Another positive that Dr Musokwane announced that will also spur the local economy is Government’s resolve to pay retirees three months after their retirements.
This will enable the retirees to invest in the economy and thereby contribute to job creation. Delayed payments of pension benefits had left many in destitution.
We are glad that Government also reiterated its determination for the mining sector to reach the three million tonnes of copper target output with improved investment and stable taxation.
Dr Musokotwane said the projected three million tonnes copper output was the future of the economy because it would involve expansion in transport, employment and general business.
Not to be left behind are the small-scale miners, with Dr Musokotwane proposing that the government would introduce a simplified and lower tax regime for them, including artisanal.
A booming mining industry is one that would unlock many side industries in the copper value chain and impact positively on the standard of living for people in the region.
The agriculture sector has also received some attention with Government appreciating that it has been the largest employer in the country.
But while appreciating Government’s acquisition of a loan of US$10 million from the Africa Development Bank to cater for 6, 000 hectares to cover for infield irrigation which would benefit 12, 000 people, it’s the small-scale farmers who need improved services – promptly delivery of farming inputs.
In a nutshell, it is a balanced budget whose success depends on the collective hard work of all Zambians.
