Q FM Africa's Modern Radio
Finance Minister Felix Mutati has unveiled a K64.5 billion 2017 national budget representing 27.7 percent of GDP.
Presenting the proposed budget in Parliament today, Mr Mutati says K42.94 billion will be financed through domestic revenues,K2.23 billion through grants from cooperating partners and K19.33 billion through debt financing from domestic and external sources.
He has proposed to allocate a total of K18 billion towards general public services, of this amount, K11.5 billion will go towards external and domestic debt payments.
Mr Mutati has allocated a total of K887.9 million to the Local Government Equalisation Fund, and further allocated K218.4 million to the constituency development fund to enhance community participation in development.
Mr Mutati has also proposed to spend K10.6 billion towards education and skills development, with K1 billion earmarked for various infrastructural projects, such as schools,universities,colleges and trades training.
He has proposed to spend a total of K5.8 billion to facilitate health delivery.
Mr Mutati says this allocation will be utilized on preventive care ,opening up of cancer screening centres in each district and recruitment of frontline medical personnel.
He has further proposed to spend K267.5 million for medical equipment and infrastructure as well as K769.1 million for drugs and medical supplies.
And Mr Mutati says as in line with the theme for the 2017 budget which is “restoring fiscal fitness for sustained inclusive growth and development”, and the economic recovery programme pillars that aim to restore budget credibility, transparency and policy consistency, government will as part of its fiscal targets and polices implement the phased removal of electricity subsidies so as to reduce pressure on public finances.
He says government will also restrict new public sector recruitments to only frontline workers in the health and educations sectors.
The Minister has also proposed to increase the exempt threshold for Pay as You Earn (PAYE) from K3,000 to K3,300 per month.
He has further proposed to increase excise duty on air time from 15 percent to 17.5 percent.
The tax measures will take effect in January 2017.