Zambia plans to spend additional $991 million this year, mostly on maize buying

By Reuters News

LUSAKA, Oct 22 (Reuters) - Zambia's finance minister on Thursday asked parliament to approve 19.9 billion kwacha ($991.16 million) of extra spending this year, most of which would go on maize purchases by the state agency that manages the country's food reserves.

  • Presenting the supplementary budget, Finance Minister Situmbeko Musokotwane said it was needed after the Food Reserve Agency (FRA) bought more maize than planned

  • "This higher spending on crop purchases is mainly due to Government's decision to take advantage of this year's bumper harvest to stock up ... (before) the anticipated lean period in 2027 due to the adverse effects of El Nino," the minister said

  • The International Monetary Fund noted earlier this month when it announced a staff-level agreement on a new lending programme that government expenditures had increased markedly due to substantially higher-than-budgeted spending by the FRA

  • Zambia is yet to release its 2027 budget. The finance ministry has indicated next year's budget could see a 7% increase in government spending while revenue may rise 6%


($1 = 20.0774 Zambian kwacha)

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