GOVERNMENT has proposed a K284.8 billion Budget for the 2027 fiscal year, with 82.1 percent expected to be financed through domestic revenues. Minister of Finance and National Planning, Situmbeko Musokotwane, said the Budget will be financed through domestic revenues of K233.7 billion (representing 82.1 percent), borrowing of K41.9 billion (14.7 percent) and grants from Cooperating

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GOVERNMENT has proposed a K284.8 billion Budget for the 2027 fiscal year, with 82.1 percent expected to be financed through domestic revenues.

Minister of Finance and National Planning, Situmbeko Musokotwane, said the Budget will be financed through domestic revenues of K233.7 billion (representing 82.1 percent), borrowing of K41.9 billion (14.7 percent) and grants from Cooperating Partners amounting to K9.2 billion (3.2 percent).

Presenting the National Budget in Parliament this afternoon, Dr Musokotwane said one of the UPND Government’s key priorities since assuming office has been to strengthen fiscal sustainability through increased domestic resource mobilisation and expenditure rationalisation.

He said domestic revenues as a share of the Budget had increased from 58.7 percent in 2021 to 76 percent in 2024 and were projected to reach 82.1 percent in 2027.

“To this end, we have consistently increased domestic revenues as a share of the Budget from 58.7 percent in 2021 to 76 percent in 2024, and we project to reach 82.1 percent in 2027,” he said.

Dr Musokotwane also proposed increasing the withholding tax on dividends paid by mining companies from zero to 15 percent to align their tax treatment with that of companies in other sectors.

He further proposed reforms to the minimum alternative tax regime, under which the tax would only apply to businesses that have recorded losses for three consecutive years.

The Minister said the measure would ensure that businesses with persistent losses are brought under the alternative tax regime while allowing those experiencing recurring downturns to recover and return to profitability.

Dr Musokotwane also proposed amendments to the Income Tax Act, Customs and Excise Act and Value Added Tax Act to strengthen tax provisions, remove ambiguities and improve tax administration.

He said the Government has demonstrated its commitment to delivering on its promises over the past few years.

Dr Musokotwane said the 2027 Budget provides a clear policy direction, with targeted interventions to advance the Government’s Grow Zambia Agenda.

He said achieving the Budget’s objectives will require collective effort to build the Zambia citizens desire.

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