Transparency International Zambia (TI-Z) is looking forward to the presentation of the 2024 National Budget by the Honorable Minister of Finance on Friday 29th September 2023. The National Budget is the most important short-term public policy tool that is used to measure government policy commitments and direction.
As part of our expectations, we wish to see a budget crafted around a relevant theme which takes into account the current macroeconomic and socioeconomic context. With Zambians complaining daily about the rising cost of living, we expect the 2024 National Budget theme to resonate with this critical issue, in order to accord government the opportunity to remedy the situation.
In terms of the macroeconomic objectives, we are looking forward to a higher economic growth target in line with Zambia’s long-term aspirations under Vision 2030. We should therefore seek to attain a real GDP growth rate of at least 5.0 percent in 2024. TI-Z also expects that government will maintain or reduce the domestic resource mobilization target, which was set at 20.9% of GDP in 2023. This is aimed at reducing the tax burden as a measure to alleviate the rising cost of living, especially among the working class.
Further, the 2024 National Budget should avoid the error of being too ambitious on the expenditure side, as this would exert pressure on the resource envelope. Therefore, while we expect government to increase budget allocations towards the social sectors and law enforcement agencies, as observed in the 2023 and 2022 National Budgets, we expect a minimal reduction in the total budget. The reduction in the total budget from K172.99 billion in 2022 to K167.3 billion in 2023, coupled with increased allocations to the social sectors was commendable.
Furthermore, and in line with the expected budget theme, government should reduce personal income tax. This should be done through reducing the PAYE tax rates by at least 2.5% across all the tax bands, in order to alleviate the impact of the rising cost of living on the entire workforce.
It would also be prudent to set proper policy direction in the Agricultural Sector in order to reduce the cost of Maize and to increase the production of other crops. This is critical for controlling inflation in the short to medium term.
Lastly, TI-Z would like to caution the government against significantly increasing the allocation towards the Constituency Development Fund (CDF). The CDF allocation was increased from K4 billion in 2022 to K4.4 billion in 2023. While we support the CDF programme, and would like to see increased allocations in future budgets, there is need for comprehensive audits to establish the value for money before increasing its allocation.
We are aware of escalating cases of abuse of CDF funds, and in such instances, we have submitted them to relevant Law Enforcement Agencies for further investigation. We therefore expect the government to maintain the CDF allocation, pending these audits and investigations in order to safeguard public funds.
Bright Chizonde (Mr.)
ADVOCACY, POLICY & RESEARCH MANAGER
For more details, get in touch with the TI-Z Communications Officer, Ms. Zanji Valerie Sinkala on zsinkala@tizambia.org.zm
