Debt servicing gulps K7.3 billion in May, as Zambia spends K14.4 billion on public finance

Government, in May, spent K7.3 billion on debt servicing, taking up almost half of the money released to finance public service delivery.

According to the May budget release issued on Sunday, government spent K7.3 billion to service its debt obligations, both domestic and external debt.

This was from the K14.4 billion released by the Ministry of Finance and National Planning.

“In line with the government’s commitment to reduce indebtedness, a sum of K7.3 billion was released of which, K4.1 billion went to the payment of external debt service while K3.2 billion was for domestic service,” the statement indicated.

Additionally, government also spent a total of K3.9 billion on costs relating to the wage bill for various public service workers, including health, teaching and overseas allowances for diplomats in missions abroad.

Government also released K1 billion for transfers, subsidies and social benefits, K1.8 billion for implementation of various developmental programmes and general operations, while K328.8 million was free for capital expenditure.

“Notably, K602 million was released as counterpart funding for programmes supported by cooperating partners and K160 million went to the procurement of drugs and medicals supplies,” the update indicated.

Reflecting on the budget, Finance and National Planning Minister, Situmbeko Musokotwane, said the treasury would continue to pursue transformational reforms and initiatives aimed at attaining an optimum value for money equilibrium in public service delivery.

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