…as he announces that government shall this year borrow K33.3bn of the country’s GDP
By BUUMBA CHIMBULU
FINANCE and National Planning Minister, Situmbeko Musokotwane says Government cannot abruptly stop borrowing, as he announces clearance from Parliament to borrow K33.3 billion this year.
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Government has also announced the release of K518 million school grants on Tuesday this week for the first quarter of the year.
On the K33.3 billion, Dr Musokotwane said Parliament gave authority to Government to borrow K33.3 billion translating into 19 percent of the budget or 5.2 percent of Gross Domestic Product (GDP).
Dr Musokotwane explained that the K33.3 billion borrowing would be financed through domestic and external borrowing amounting to K16.3 billion and K17.0 billion respectively.
He announced at the 2024 national budget media briefing in Lusaka yesterday the gradual decrease in borrowing while urging the public not to pay attention to those attacking Government of continued borrowing.
“We are still borrowing because we cannot just abruptly stop just like that. We have to stop gradually to drive debt back to sustainability. So most of this money will borrowed domestically.
“Yes, we are borrowing, but remember the key is relative to the size of the economy. So, you should not pay attention to those saying Government is still borrowing, it is a whole different story all together,” he said.
He said domestic financing would be raised through the issuance of Treasury Bills and Government Bonds, while external financing was mainly from disbursements on already contracted loans.
Meanwhile, Dr Musokotwane said school grants were released and disbursed to schools.
He explained that the idea was to ensure that the schools had the grants before pupils reported back.
“Next week, the Constituency Development Fund (CDF) components supporting children in boarding schools will go. We do not want a situation where children are sent back when they reach school. That money will be released on time,” Dr Musokotwane said.
At the same briefing, Secretary to the Treasury, Felix Nkulukusa said the money was being released between the ranges of K30, 000 as minimum and K2 million as maximum.
“School grants are released on a quarterly basis, so for the first quarter of 2024, we have released K518 million,” Mr Nkulukusa said.
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