K119.6 bn National Budget to boost economic growth

MINISTER of Finance Bwalya Ng’andu has unveiled a K119.6 billion proposed National Budget for 2021 aimed at laying a foundation for economic recovery, safeguarding livelihoods and protecting the vulnerable in society in light of the COVID-19 pandemic.Presenting the budget to the National Assembly last week, Dr Ng’andu said government has developed a medium term Economic […]

K119.6 bn National Budget to boost economic growth
MINISTER of Finance Bwalya Ng’andu has unveiled a K119.6 billion proposed National Budget for 2021 aimed at laying a foundation for economic recovery, safeguarding livelihoods and protecting the vulnerable in society in light of the COVID-19 pandemic.Presenting the budget to the National Assembly last week, Dr Ng’andu said government has developed a medium term Economic Recovery Programme as a successor to the Economic Stabilization and Growth Programme of 2019.He said the Economic Recovery Programme provides incentives to reinvigorate growth and build resilience and safeguard livelihoods and protect the vulnerable in society as well as restore debt sustainability.Dr Ng’andu said the 2021 budget will now be output based as opposed to activity based budgeting in order to promote performance and enhance transparency and accountability.The Minister of Finance has since raised the exemption threshold for Pay-As-You Earn to K4, 000 from K3, 300 per month in order to increase disposable income of employees.The minister has further given relief to differently abled persons by increasing tax credit to K500 from K250 and has also increased deduction by an employer for employing a person with disability to K2, 000 from K1, 000.He has also increased the allocation towards dismantling of arrears to K2.3 billion in 2020 from K437 million in 2019.Further, Dr Ng’andu said Government will reduce borrowing from the domestic market to 1.1 percent of GDP from 1.4 percent of GDP in 2019.He said government is resolved to restore fiscal health and has projected fiscal deficit to reduce to 9.3 percent of GDP in 2021 from 11.7 percent in 2019.Dr Ng’andu has since proposed to spend K57.8 billion for general public services with K18.3 billion being for domestic debt servicing and K27.7 billion for external debt obligations.The minister has further allocated K1.2 billion for the Local Government Equalisation Fund and K598.1 million for the 2021 General Elections.Dr Ng’andu said government has provided K2.8 billion to dismantling arrears owed to suppliers of goods and services in order to improve liquidity and stimulate economic activity.He said government has allocated K5.7 billion for the Farmer Input Support Programme (FISP) to reach out to 1 million farmers and a further K517.5 million for the national strategic food reserve in order to make the country food secure.The minister said government will spend K567.3 million to complete the Kenneth Kaunda and Simon Mwansa Kapwepwe International Airports while K6.2 billon will be spent on ongoing road infrastructure projects.He further explained that the budgetary allocations for 2021 are based on priority areas as identified in the Economic Recovery Programme as aligned to the 7th National Development Plan. – ZANIS The Sun