MINISTER of Finance and National Planning Situmbeko Musokotwane has admitted that Government is feeling the financial squeeze from rising debt and growing social spending demands, but says the solution lies in tightening the country’s revenue collection systems.
Reflecting on the K15.8 billion released in May to finance public services, Dr Musokotwane said the New Dawn administration is not blind to the pressure cooker it finds itself in, juggling debt repayments and finance public service needs all at once.
But instead of crying foul, the Government is responding with reforms meant to plug tax leakages and collect what is due.
“The Government is also cognisant of the emerging spending pressures in 2025 due to debt service obligations and social-sector spending needs. This is why we remain keen to scale-up the mobilisation of domestic revenues to preserve fiscal and debt sustainability, and safeguard priority social and infrastructure spending,” Dr Musokotwane said.
He explained that one major move to boost tax compliance is the integration of the Zambia Revenue Authority (ZRA) system with the Government’s Integrated Financial Management Information System (IFMIS).
Meaning that suppliers to public institutions must now present a valid TPIN to do business or risk being sidelined.
Dr Musokotwane said this measure is expected to seal revenue leakages and ensure that no tax-dodging contractor benefits from the national purse.
The Minister stated that the May expenditure which included K5.5 billion for debt service and arrears, K5.3 billion for the wage bill, K1.9 billion for government operations, K1.8 billion for social protection and subsidies, and K1.3 billion for infrastructure projects, was part of Government’s broader economic reform programme.
By George Musonda
Kalemba June 16, 2025
