By MILDRED KATONGO –
THE Treasury has disbursed K2.1billion to dismantle the domestic debt and another K200million for the 2016/2017 Farmer Input Support Programme (FISP).
Finance Minister Felix Mutati said in a statement yesterday the Government was doing its best to ensure that the stock of domestic arrears was dismantled.
Of the K2.1billion funds released between December, last year, and January, 2017, K701million went to infrastructure-related programmes, with the Ministry of Higher Education getting K70million, the Ministry of Local Government given K70million for water, sanitation, markets and bus stations, Ministry of General Education receiving K70million, and Ministry of Health K76million.

MUTATI

Mr Mutati said other departments that received meant to dismantle arrears were the National Road Fund Agency (NRFA) which got K300million, the Ministry of Infrastructure and Housing which received K90 million for infrastructure development in the new districts, and the Lusaka South Multi-Facility Economic Zone (LS-MFEZ).
“Government is doing its best to ensure the stock of domestic arrears is dismantled. In relation to this, K2.1 billion has been released by the Treasury between December, 2016 and January 2017, targeted at domestic arrears. And the Government has today (yesterday) released K200million for the 2016/2017 FISP. This brings the total releases to the current seasons FISP to K800million,” he said.
He said K615million was released for agriculture related programmes, which included K400million for the FISP to covers for arrears, which were accrued in the 2015/2016 season, and a further K190million for arrears under the Food Reserve Agency (FRA).
Other arrears targeted included an allocation of K80million given to the Public Service Pensions Fund for pensioneers, K69 million to the Electoral Commission of Zambia (ECZ) for reduction of arrears related to the 2016 general elections, K50.2 million for reduction of arrears for electricity imports, and K300 million to the PTA Bank for fuel import arrears.
He said the Government was working hard to ensure the arrears were dismantled as and when the resource-envelop and competing demands allowed.
“We are putting in place systems to instill fiscal prudence and promote budget credibility by only financing programmed activities so that our fiscal objectives for the 2017 budget, the medium term expenditure framework and long-term development plans are met accordingly,” he said.
Mr Mutati also said that the K200million, which has been released for the 2016/2017 FISP would help bring the economic diversification programme, through agricultural development, back on track.