- Stay Connected
Socialize
Chikwanda’s 2014 Budget Ready Today
Chikwanda
This will be the second PF government wholly-owned budget and many people will be looking forward to knowing what is lined up for development, job creation and poverty reduction.
President Sata has already set the tone for the budget, with Government targeting growth in gross domestic product of more than 7 percent this year.
Next year’s budget is projecting growth in GDP (the total amount of goods and services produced) at more than 8 percent.
When opening the second session of the 11th National Assembly, President Sata said the budget will ensure pro-poor and inclusive growth. The focus will be on education, health, agriculture, local government and housing, improved governance and a focus on rural development.
In this year’s budget K4.39 trillion (unrebased) was set aside for the transport sector with the road subsector getting K3.43 trillion while railway infrastructure got K642.6 billion. The communication sector got K122.7 billion while tourism got K63.8 billion.
With the ongoing massive infrastructure works, the budget is likely to maintain this so that the projects are completed.
Some observers, however, have noted that Government wants to shift from an expansionary budget to constrained expenditure which could stall some of the ongoing projects but only Mr Chikwanda knows the position as at now.
Some experts want Government to review its tax structures to avoid relying on the few formal workers, saying taxing them heavily has potential to slow down economic growth.
This year Pay as You Earn was the highest contributor to government revenue accounting for K5 trillion unrebased while company tax contributed K4.7 trillion.
But with the ongoing massive infrastructure works, it is expected that Government will review revenue measures including expanding the tax base so that these works continue.
The budget is also going to review taxes and seal loopholes to avoid tax avoidance. Mr Sata also said the framework for granting incentives will also be reviewed while audit trials will be enhanced so that export volumes are correctly receipted.
There will also be other indicators such as well-managed borrowing from the domestic market, reduced lending rate, single digit inflation maintenance of single digit inflation and stable exchange rates as well as increased private sector credit.
So far the government has increased civil servants’ salaries and in line with the presidential speech, the minister’s focus should be on continued infrastructure development in the road sub-sector and education, health and agriculture sectors including projects such as irrigation, crop diversification as well realigning savings from removal of subsidies.
Institutions such as Zambia Union of Financial and Allied Workers feel that workers are anxious to see how the government will broaden the tax base so that it captures the informal sector instead of just relying on the few formal workers who are heavily taxed.
Many civil society organisations have also called on Government to increase the tax exempt threshold to ease pressure on the formal workers who are bearing the brunt of providing revenue and yet the mines only paid less than K2 trillion compared to income tax from PAYE at K5 trillion in unrebased currency.
These are some of the expectations by some stakeholders in next year’s budget but for now people can only hope that Mr Chikwanda will put more money in people’s pockets.
But the truth is that he has a tough time to deliver more money given the realities of what is happening in the global economy where the Eurozone economy is still sluggish, just in the USA, copper prices are bearish (retreating), China’s economy is not very vibrant and so is its demand for copper while back at home Zambia Revenue Authority is struggling to beat its targeted tax collections.
Posted by Editor (online)
on October 11, 2013. Filed under LATEST NEWS.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
KANANGA
October 11, 2013 at 7:46 am
P.A.Y.E contributions higher than company tax. Nowonder foreign companies are smiling while our own workers are crying(striking).More money in whose pockets? That is SATAnism. Gov`t must reduce expenditure;trim cabinet,avoid inducing useless bye elections,stop sponsoring PF thugs… We ve to improve agriculture & manufucturing.If govt leaders do not stick to the budget then its rendered uselessness.
HALEISA HALELANDA
October 11, 2013 at 10:06 am
imwe naimwe. P.A.Y.E was even higher under MMD.
CHIEF TRIBALIST
October 11, 2013 at 8:51 am
GOVT OF THE BEMBAS BY BEMBAS FOR BEMBAS.TRIBALISTS…..LOOK AT THE STATISTICS OF KEY GOVT POSITIONS(IE CABINET,PERMANENT SECRETARIES,AMBASSADORS,HIHG COMM.ETC)
NORTHEN,MUCHINGA,LUAPULA…..82%
EASTEN………………….. 7%
WESTERN…………………..4%
CENTRAL…………………..4%
N/WESTERN…………………3%
Isaac
October 11, 2013 at 9:37 am
Its One Zambia One Nation no tribalism at play. Now let me put it this way; if province has three members of parliament and the other one has eight that belongs to the ruling party, now when choosing cabinet ,ministers do you think they can have equal number of cabinet ministers? Put tribalism aside just think logically?
CHIEF TRIBALIST
October 11, 2013 at 10:33 am
WHAT YOU SHOULD KNOW ISAAC IS THAT PERMANENT SECRETARIES,AMBASSADORS,HIGH COMMISIONERS ARE PRESIDENTIAL APPOINTEES. AND HOW MANY HAS SATA APPOINTED FROM OTHER REGIONS………..MAKE A BRAVE ANALYSIS……..MORE THAN 90% ARE FROM ONE REGION. IS THIS NOT BEING TRIBAL? NO WONDER LOZIS WANT TO BREAK AWAY. PERIOD
kelvin
October 11, 2013 at 5:27 pm
TRIBALIST! stop thinking like a child.talk about developmental issues, how we can take this country from point A to B.i wonder what relationship exists between the national budget and your contentious/division creative topic of yours.seriously having thinkers like you has really costed this country developmentally.think positively
Sakala
October 11, 2013 at 2:34 pm
Insaka isaka abalipo. Kabili akembya ukwete eko bominako imbwa.Munsoselo shimbi tutiila ifyuma fyalupwa basungisha kubakaya. Ngacakuti wafilwa ukwilula ishi insoselo ukese kulubemba.
Sakala
October 11, 2013 at 2:38 pm
Ifyuma fyalupwa basungisha kubakaya
Musonda Njalamimba
October 11, 2013 at 9:17 am
When PAYE was lower than company tax (30% and 35%) respectively,company shareholder/Directors used to practice tax avoidance by paying themselves Directors’ Fees which is taxed at a lower rate and hence reducing taxable amounts for corporate tax.
Thus, now they are all at 35%.
Sadman
October 11, 2013 at 10:20 am
I concur wth isaac.Infact having a minister frm our region doesnt imply that the living standard of pipo in that region has improved.Am bemba yes&there ‘r many bemba ministers!But has that benefited me,NO!Just work hard as an individual.
prophet Malik
October 11, 2013 at 1:50 pm
Are those figures in rebased?
MundiaM
October 11, 2013 at 4:32 pm
Prophet malik, rebased percentage tax? That is being cantankerous for real! LOLest!
EAT ZAMBIA CLEAN
October 11, 2013 at 3:50 pm
3 TO 4 DEPUTY MINISTERS IN ONE MINISTRY, COME ON ZAMBIANS. THEY SHOULD ALSO REMOVE SUBSIDY ON MINISTRAIL APPOINTMENTS
EAT ZAMBIA CLEAN
October 11, 2013 at 3:51 pm
POLITICS OF IDENTITY
Ambassage
October 11, 2013 at 10:21 pm
All this money will go 4 by-elections (unrest politics). Some of the Consequences of poor governance are F.R.A has not finished paying farmers, nurses on strike coze of 4% salary incliment, no drugs in health center, high prices of basic needs e.g milie-meal, conflict within government (summer kabimba against felow ministers),the list goes on. Pf change yo governance b4 zambians change u.