The Ministry of Finance and National Planning has announced that Zambia’s Total Revenues and Grants collections for 2024 exceeded expectations, reflecting a positive economic performance. Preliminary estimates reveal that collections amounted to K151.2 billion, which was 4.8% higher than the target of K149.8 billion.
Revenue Breakdown
Acting Permanent Secretary Mulele Mulele disclosed that Tax Revenue reached K118.8 billion, surpassing the target of K114.8 billion by 3.5%. This growth was largely driven by strong performances in Customs and Duties and Value Added Tax (VAT).
Non-Tax Revenue also exceeded expectations, with collections at K29.5 billion, 12.1% higher than the target of K26.3 billion. However, grants underperformed, falling 4.6% short of the target.
Expenditure Performance
Government expenditure for 2024 totaled K200.2 billion, exceeding the budgeted amount of K177.9 billion by 31.2%. Key areas of overspending included:
- Social Benefits: Spending reached K10.4 billion, 23.6% above target, driven by programs such as the social cash transfer.
- Interest Payments: These amounted to K65.99 billion, 28.1% higher than the target of K51.5 billion.
- Personal Emoluments: Expenditures stood at K53.3 billion, slightly above target by 0.9%.
However, the Government spent less than budgeted in some areas:
- Use of Goods and Services: Expenditure was K11.4 billion, 36.0% below the target, leading to the accumulation of arrears.
- Transfers and Subsidies: Spending was K23.6 billion, 15.2% below the target of K27.8 billion.
Budget Deficit
Despite higher expenditures, preliminary estimates show that the budget deficit for 2024 stood at 2.7% of GDP, significantly below the target of 4.8%. This reflects efforts by the Government to manage fiscal pressures while supporting key sectors.
A Path Toward Economic Stability
Speaking at the Town Hall Forum on the 2024 national budget performance and economic development in Lusaka, Mr. Mulele emphasized the Government’s commitment to balancing fiscal discipline with economic development.
The revenue and expenditure trends for 2024 underscore Zambia’s potential for economic growth and the importance of strategic planning to sustain this progress. The Ministry continues to focus on enhancing revenue collection and optimizing expenditure for national development.
