Q FM Africa's Modern Radio
FINANCE Minister Alexander Chikwanda has unveiled a K46.7 billion 2015 national budget or 24.6 percent of GDP.
Presenting the budget to Parliament this afternoon, Mr Chikwanda says budget will be financed from domestic revenues of K35.1 billion which is 75.2 percent of the total budget and 18.5 percent of GDP, with grants from cooperating partners of K1.2 billion or 2.6 percent of the total budget will complement domestic revenues.
Mr Chikwanda says domestic borrowing is projected to be 2.0 percent of GDP translating to K3.8 million while K4.2 billion is a combination foreign programme and project finance.
He adds that the balance of K2.4 billion is earmarked proceeds from the 2014 Eurobond.
Mr Chikwanda has allocated K29.26 million towards the constitution making process,K586.76 million to the local government equalization fund and K1 billion to the farmer input support programme.
And Mr Chikwanda says government proposes to spend K9.4 billion or 20.2 percent of the total budget in the education sector.
He says in an effort to reduce the pupil teacher ratio,68 percent of this amount will go towards the recruitment of K5,000 teachers and sustaining the current establishment.
Mr Chikwanda adds that K1.1 billion has been provided to for infrastructure development for early childhood, primary and secondary education.
He further states that K650 million has been allocated to commence construction of additional student accommodation at the University of Zambia, Copperbelt University, Mulungushi University and Evelyn Hone College, and to continue the construction of new universities.
The Minister has also raised the allocation to bursaries by 27.9 percent to K200.2 million from the 2014 allocation of K156.6 million.
And Mr Chikwanda says government has allocated K4.5 billion or 9.6 percent of the overall budget in 2015 to the health sector in line with Government’s objective of providing equitable access to quality health care.
He says of the total allocation, K268.2 million has been allocated for the construction and rehabilitation of health infrastructure in various parts of the country.
Mr Chikwanda adds that K753.5 million has been set aside for the procurement of essential drugs and medical supplies.
He further states that K52.5 million has been allocated for the net recruitment of over 2,000 health personnel.
On the mining fiscal regime, Mr Chikwanda has proposed to redesign the mining fiscal regime by replacing the current two tier system with a simplified mining tax structure which will see an 8 percent mineral royalty for underground mining operations and 20 percent mineral royalty for open cast mining operations as a final tax.