By BUSINESS REPORTER
GOVERNMENT has projected to spend K247.3 billion over the medium term out of which 77.4 percent will be financed from domestic revenues and the balance through local and external borrowing.
This is according to the 2019-2021 Medium Term Expenditure Framework and 2019 Budget released last week and signed by Acting Secretary to the Treasury, Dick Sichembe.
Dr Sichembe however indicated that the K247.3 billion excluded amortisation.
According to Dr Sichembe, of the K247.3 billion, K75.3 billion will be spent in 2019, K81.0 billion in 2020 and K91.1 billion in 2021.
“This will average 24.8 percent of GDP per annum. Out of the projected total expenditure of K247.3 billion, 77.4 percent will be financed from domestic revenues and the balance through domestic and external borrowing, primarily for externally financed projects that have already been contracted,” he said. Over the medium term, Dr Sichembe said, Government targeted to increase the contribution of domestic revenue to Gross Domestic Product (GDP) from 18.6 percent in 2019 to 19.1 percent by 2021.
Dr Sichembe explained that this would be done through enhancing domestic resource mobilisation strategies.
He said over the 2019 – 2021 medium term, Government’s expenditure policy would be anchored on the precepts of the Economic Stabilisation and Growth Programme.
Dr Sichembe said this would specifically focus on enforcing the expenditure measures and reforms to attain fiscal consolidation.
Government, he said, would continue to pursue measures and strategies that guaranteed a more sustainable fiscal path.
“Key emphasis will be placed on gradually matching the expenditures to the domestically generated revenues, and concurrently lowering the borrowing levels as a share of GDP from the revised 2018 deficit of 7.4 percent to 5.1 percent in 2021. “This will entail among others, refocusing expenditures on key programmes that are directly linked to reducing poverty and vulnerability, creating employment and enhancing domestic revenue mobilization, as espoused in the Seventh National Development Plan,” he said.