Presentation on budget performance by ministry of finance in the first quarter.

1. Republic of Zambia
FIRST QUARTER BUDGET
PERFORMANCE
MINISTRY OF FINANCE
29TH MARCH, 2019

2. OUTLINE
1. First Quarter Performance Revenue & Expenditure
2. Appropriation In Aid (AIA) Guidelines
3. Conclusion

3. REVENUES
Preliminary figures on total revenues and grants as at 27th March,
2019 were slightly below target at K13.34 billion against a projected
collection of K13.54 billion. This shows under performance of 1
percent. There was satisfactory performance in Income Taxes and
Value Added Tax (VAT), which compensated for underperformances
which was recorded in all the other revenue categories.
4/14/2024

4. - 2,000,000.00 4,000,000.00 6,000,000.00 8,000,000.00 10,000,000.00 12,000,000.00 14,000,000.00 16,000,000.00
TOTAL REVENUE AND GRANTS
Tax Revenue
Income Taxes
VAT/ Good and Service Tax (GST)
Customs and Excise Duties
Insurance Premium
Export Duties
Non-Tax Revenue
Grants
FIRST QUARTER PERFORMANCE (JAN – APRIL)
REVENUE COLLECTION FIRST QUARTER 2019 ACTUAL REVENUE COLLECTION FIRST QUARTER 2019 PROJECTION
4/14/2024

5. 4/14/2024
INSTITUTION
2019
Approved
Estimates Jan - Proj
Jan -
Prelim
VAR
% Feb - Proj
Feb -
Prelim
VAR
%
Zambia Police 63,556,756 4,969,523 5,230,790 54,165,187 4,574,950 10
Ministry of Mines and Minerals
Development 45,516,706 3,793,059 2,035,767 -463,793,059 2,247,513 -41
Ministry of Home Affairs 419,880,640 34,990,053 27,524,564 -2134,990,053 - -100
Ministry of Foreign Affairs 17,100,210 1,425,018 2,064,189 451,425,018 - -100
Judiciary 30,121,514 2,510,126 2,293,781 -92,510,126 - -100
Ministry of Information and
Broadcasting Services 2,157,673 179,806 2,020 -99179,806 266,672 48
Ministry of Justice 120,000 10,000 - -10010,000 - -100
Ministry of Commerce, Trade and
Industry 268,600,366 21,894,064 39,729,957 8122,014,864 16,651,084 -24
Ministry of Finance 312,223,076 26,018,590 - -10026,018,590 - -100
Ministry of Labour and Social
Security 3,827,501 757,251 70,731 -91282,250 52,390 -81
Ministry of Community
Development and Social Welfare 1,229,280 102,440 33,000 -68102,440 52,390 -49

6. INSTITUTION
2019
Approved
Estimates Jan - Proj Jan - Prelim
VAR
% Feb - Proj
Feb -
Prelim
VAR
%
Ministry of Transport and
Communication 1,045,115,785 76,061,740 86,231,105 13 41,888,286 41,467,284 -1
Ministry of Water Development,
Sanitation and Environmental Protection 113,500,000 3,800,000 2,815,915 -26 9,583,333 5,907,999 -38
Ministry of Energy 161,578,993 13,087,898 16,249,500 24 12,093,045 18,959,047 57
Ministry of Works and Supply 1,054,991,366 85,236,947 89,956,314 6 85,087,917 86,564,165 2
Ministry of Tourism and Arts 136,073,316 5,492,933 15,166,006 176 6,834,916 9,477,461 39
Ministry of Lands and Natural Resources398,046,000 30,072,485 46,514,853 55 28,041,945 - -100
Ministry of Fisheries and Livestock 12,100,000 957,600 470,323 -51 374,100 - -100
Ministry of Agriculture 203,625,930 16,968,828 33,194,635 96 16,968,828 - -100
TOTAL 4,289,365,112 324,528,359 366,767,535 13 296,363,761 186,220,953 -37
4/14/2024

7. EXPENDITURE
6,196,911
1,288,570
6,699,318
1,580,655
315,653
193,159
5,078,178
121,960
4,107,106
742,567
8,337,578
1,203,378
87,313 77,100
4,692,769
41,082
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Personal
Emoluments (PEs)
Use of Goods and
Services
Debt Payments Transfers and Other
Payments
Social Benefits Other Expenses Assets Liabilities
K'000
Expenditure Performance (January - March*)
Projection Preliminary*

8. Preliminary figures indicate that expenditures during the period January to 27th March, 2019
stood at K17.9 billion and were below the target of K21.5 billion by 10 percent. Notable
categories are:
Personal Emoluments at K4.1 billion were below the target of K6.2 billion by 34 percent.
The released funds catered for overseas allowances, part of third party payments and part of
February net salaries.
Use of Goods and Services amounted to K 742.6 million and was below the target of K1.3
billion by 42 percent. This underperformance is as a result of constraining this category of
expenditure to accommodate other expenditure pressures including debt servicing.
Debt payments: Domestic and External Debt Payments amounted to K5.1 billion which was
above the target of K4.4 billion by 16 percent mainly due to external debt payments
Transfers and Other Payments at K1.2 billion were below the target of K1.6 billion by 24
percent. Releases to grant-aided-institutions including hospitals and schools are lagging
behind by two to three months.
• Notable expenditures included K186.9 million to local authorities, K484.1million for the Farmer Input
Support Programme and K45.0 million towards the Food Security Pack.

9. • Assets Total releases towards acquisition of assets stood at K2.8 billion and was
below the target of 5.0 billion by 33 percent. Notable expenditures under this
category included K455.9 million funded to the road sector. The target is likely to
be exceeded as disbursements on foreign financed projects for the month of
March are finalised in the following month.
• Liabilities amounted to K41.1 million, which was below target by 66 percent.
Financing
• During the period under review, the Treasury accessed gross financing of K4.2
billion of which K1.4 million was from domestic sources and K2.8 billion external
project financing.
• However, in view of the shortfall on government securities, K1.3 billion was used
to settle maturities using general revenues,

10. • Appropriation in Aid (AIA) is a mechanism that prioritizes funding to specific Ministries, Provinces and
other Spending Agencies (MPSAs) that collect revenues on behalf of the Government.
• In 2019 fiscal year, K631 million has been allocated, with the commitment to fund K158 million per
quarter resources permitting
• funds provided under AIA mechanism, are strictly meant for use on activities linked to revenue
collection in line with government’s objective to increase domestic revenue mobilization.
• It is important to note that ,funds allocated under AIA are not additional funds but form part of the
approved allocation in the 2019 Budget strictly for revenue generating activities.
• Hence funds earmarked for revenue generating activities will not be varied to other ACTIVITIES
OTHER THAN REVENUE GENERATING ONES.
4/14/2024

11. • The Fiscal situation still remains challenging as non-
discretionary expenditures such as salaries, grants and debt
obligations from the previous months are being carried forward
to the 2nd Quarter.
• Therefore, there is need to strengthen the revenue generating
capacities for all non-tax revenue collecting institutions.
• Controlling Officers must ensure that revenue generating
activities are prioritized when resources are made available to
institutions.

12. THANK YOU!