Covid-19 economic stimulus must be sustainable – Yamba

BUUMBA CHIMBULU writes GOVERNMENT will continue to assess the covid-19 situation and implement appropriate economic stimulus and sustainability measures, Secretary to the Treasury, Fredson Yamba, has said. Mr Yamba said the Ministry of Finance will regularly inform the public on intervening measures taken to stabilise the economy. The ministry has so far implemented various measures to stabilise the economy amidst the outbreak of covid-19 which has destabilised the world economy. “As the COVID-19 situation evolves, the Ministry of Finance will continue to assess the situation and implement appropriate economic stimulus and sustainability measures. We will regularly inform the public on intervening measures taken to stabilize the economy,” he said in a statement. Mr Yamba indicated that the treasury had released K629.70 million to facilitate service delivery in various Ministries Provinces and Agencies to combat covid-19. He said this was part of the K6.86 billion released last month to finance developmental programmes and other public service delivery operations. Mr Yamba said of this amount, the key items to which funds were released include K1.4 billion for the public service wage bill, K823.6 million for subsidies and social benefit programmes and K736.2 million for service delivery.  He said that K271.6 million was released for on-going capital projects such as transport infrastructure and rural-electrification. “The Treasury also released K2.55 million to help dismantle liabilities relating to the consumption of goods and services by various Ministries, Provinces and Agencies. “ During the address to the nation made on Friday 24 April 2020, His Excellency the President of the Republic of Zambia Dr Edgar Chagwa Lungu directed the Ministry of Finance to expedite the payment of K1 billion to various suppliers of goods and services to Government,” he said. Mr Yamba said an update on progress made to date would be given during the week. In April 2020, he said, Government released K823.6 million towards transfers and subsidies, of which an amount of K227.73 million went towards propelling revenue generating activities under the Appropriation-In-Aid (AIA) mechanism against the amount of K201.4 million earlier profiled. Mr Yamba said K178.4 million was released to support the operations of Grant Aided Institutions. Notable among the recipients were National Assembly which got K5.5 million, Zambia Education Publishing got K5 million, and Zambia Revenue Authority which received K127.5 million to support operations and resource mobilisation.  “The Minister of Finance is emphatic on the need for the new ZRA Board to not only ensure that the recently issued economic stimulus Statutory Instruments are thoroughly communicated to stakeholders but also effectively implemented in line with the commitment made by President Lungu for the Government to cushion the impact of COVID-19 on business and enterprise, countrywide, and achieve a positive knock-on-effect on sustainability,” he said. To support continuous operations, he explained, hospitals received a total of K104 million in April 2020, part of which is front-loaded financing.  Mr Yamba said in addition, K111.2 million was released for purchase of drugs and other medical supplies. He indicated that K79 million was given to Public Universities and K22.2 million was pumped in the Local Government Equalisation Fund to cover the outstanding balance for April 2020 – having earlier received more than its monthly requirement for March 2020. The Sun