The Minister of finance proposed the second […]

The Minister of finance proposed the second supplementary budget amounting close to K20 billion, up from the initial K253billion budget and K26 billion first supplementary budget which will bring the total to over K290 billion once approved. According to some experts in the financial sectors, the proposed supplementary budget is a clear indication of poor planning, considering that the amounts seem to be huge.

A check by ZBT shows that out of the total K19.9b proposed supplementary budget, K15.8 billion represents 79% is to be utilized under Head 89- Ministry of Agriculture l, of which K14.7 billion is required to pay farmers who supplied maize to FRA in 2026.

Private Sector Development Association Chairperson Yusuf Dodia has told Zambian Business Times ZBT that the huge amounts of the proposed supplementary budget is questionable even though the number of MP’s increased.

“ The country’s huge budget variances, needs to should be questioned on whether the 2026 budget was properly done, owing to the fact that the supplementary budgets seem to be huge, even though the argument for the second supplementary budget might be pinned to the increased number of MP’s in Parliament”, said Dodia.

However, considering that a huge chunk of the amount is directed to the ministry of Agriculture sector, implies that the planning process was not properly done.

 “The implications if the supplementary budget is approved will the government will be borrowing more money from the domestic economy, owing to the fact that when the first supplementary Budget was approved in May a government had to borrow through treasury bills and GRZ-Bond, which will be a similar case of the budget is approved for the second supplement,” said Dodia.

He added that approving the second supplementary budget will lead to increased domestic debt. “ Approval means that domestic debt is growing significantly, which should be taken into account going forward, as the 2027 national budget is yet to be launched”, said Dodia.

Article by Justine Phiri