MATHEWS MALAZIKA
Lusaka
GOVERNMENT has proposed a K19.9 billion supplementary budget, with K14.7 billion earmarked to pay farmers who supplied maize to the Food Reserve Agency (FRA) this year.
Presenting the supplementary estimates to the House yesterday, Minister of Finance and National Planning Situmbeko Musokotwane said the additional funding is required to meet spending pressures, particularly following FRA’s purchase of maize volumes far above its original target.
Dr Musokotwane said the agency has bought 2.7 million tonnes of maize against a target of 500,000 tonnes.
Of the proposed supplementary budget, K15.8 billion, representing 79 percent, has been allocated to the Ministry of Agriculture.
The allocation includes K14.7 billion for payments to maize suppliers and K1.1 billion to support the 2026/2027 Farmer Input Support Programme (FISP) e-voucher scheme.
The Ministry of Finance and National Planning has been allocated K1.3 billion, representing 6.3 percent of the proposed supplementary budget.
Dr Musokotwane said K1 billion will cover the Zambia Revenue Authority’s 2026 ASYCUDA processing fees, while K232 million is for additional World Bank grants supporting projects in climate-risk protection, mineral investment, governance and sustainable agriculture.
The education sector has been allocated K540 million to address shortfalls in tuition and allowance payments administered by the Higher Education Loans and Scholarships Board (HELSB).
The Ministry of Defence will receive K422.5 million to support higher-than-anticipated security operations, while K300 million has been set aside under the contingency vote for unforeseen expenditure.
To finance the supplementary budget, Government has proposed borrowing K18 billion from the domestic market.
Other financing sources include K1.3 billion in additional revenue collections, K510.8 million in additional donor funding, K82.9 million in savings from external debt service and K27.3 million in unspent balances carried forward from 2025.
And Speaker Nelly Mutti referred the supplementary estimates to the expanded Planning and Budgeting Committee for consideration and a report to the House. https://enews.daily-mail.co.zm/welcome/home