2021 National Budget Unveiled
Julius Sakala-Finance Minister, BWALYA NG’ANDU has proposed a 1-hundred and 19 point 6 billion-kwacha 2021 national budget.
The budget which is about 13 billion kwacha above this year’s allocation is aimed at attaining its theme which is, “Stimulate economic recovery and build resilience to safeguard livelihoods and protect the vulnerable.”
Unveiling the budget in parliament today, Dr. NG’ANDU said 68 billion kwacha will come from domestic revenues and grants, while the balance of 51 point 6 billion kwacha will be raised through other financing.
He said the 2021 macroeconomic targets are achieving a real GDP growth of 1 point 8 per cent, reduce inflation to between 6 and 8 per cent, as well as grow international reserves to at least 2 point 5 months of import cover.
Other targets are reducing the fiscal deficit to 9-point 3 percent of GDP and achieving domestic revenue collections of not less than 18 percent of GDP.
And on the national debt stock, Dr NG’ANDU said the external debt has increased to 11 point 97 billion dollars, as at end-June 2020, from 11 point 48 billion dollars at the close of 2019.
He attributed the increase to disbursements on existing loans, which are financing various projects in the energy, education, road and health sectors.
The Minister however stated that government remains committed to restoring public debt sustainability and has embarked on several initiatives to achieve this objective.
These include stoppage of the contraction of new commercial debts, cancellation, postponement and re-scoping of various projects.
Meanwhile, in terms of allocations, Dr NG’ANDU has allocated 11 point 5 per cent of the budget to education, 8 point 1 per cent to health, and 4 percent for social protection programmes.