Agriculture allocation dwarfs tourism, mining

The 2024/25 proposed budget allocation has exposed the government’s weighty bias towards agriculture, arming it with K497.7 billion and dwarfing other anointed economic boosting sectors—tourism and mining. 

Ministry of Finance and Economic Affairs Simplex Chithyola-Banda yesterday presented the fiscal plan in Parliament pegged at K5.98 trillion.

In it, he has allocated the tourism sector K4.8 billion while mining has K3.5 billion.

The Tonse Alliance government has earmarked the ATM (agriculture, tourism and mining) to achieve food security, job creation and wealth generation.

This, it calculates, would ultimately redefine the nation’s economic landscape currently battling foreign exchange shortages, rising inflation and low production to offset imports.

However, critics argue that low funding towards mining and tourism makes it difficult to realise the strategy goals.

Breaking down the ATM’s portions, Chithyola-Banda said: “The agriculture sector remains the economy’s backbone and a pillar for economic recovery. The K497.75 billion the sector has been allocated represents 8.3 percent of the total budget.”

The minister said tourism has potential to up its contribution to the growth domestic product (GDP) from the current 6.7 percent in the next six years.

“The sector has a remarkably high potential to contribute at least 11 percent to GDP by 2030 through creation of employment, generating foreign exchange and income.

“In the 2024/25 fiscal year, the sector has been allocated K4.8 billion which will be anchored by the 20-year National Tourism Investment Masterplan and a Domestic Tourism Plan,” the minister said.

Chithyola-Banda said government will further continue to implement initiatives within the mining sector which include facilitating negotiations of mining development agreements.

This, he said, includes Mkango Resources Rare Earth and Lotus (Kayerekera) Uranium projects and “management of artisanal and small-scale mining activities; and conduct mineral processing research and analytical laboratory services.”

The minister said 30 percent of the total budget will be channelled towards production and that has led to the allocation of K40 billion to the Agricultural Development and Marketing Corporation for operations and revamping agricultural production and value addition.

On the Affordable Inputs Programme, Chithyola Banda said it will get K161.28 billion, effectively shrugging off calls for it to be scrapped for draining the public purse.

The health sector has been allocated K729.47 billion, representing 12.2 percent of the national budget.

However, it still falls below the Abuja Declaration which provides that African Union countries should allocate at least 15 percent of their national budget to the health sector.