Maravi

Govt releases K440bn for infrastructure

Govt releases K440bn for infrastructure
Written by Chiwoyu Sinyangwe
Monday, April 27, 2009 3:09:31 PM

GOVERNMENT has released about K440.8 billion out of the K1. 781 trillion budgeted for capital expenditure towards infrastructure development and rehabilitation programmes in the 2009 budget.

And finance deputy minister Chileshe Kapwepwe has called for prudence in the utilisation of resources allocated for road works, saying the current global financial crisis has aggravated the government’s ability to fund the sector as revenue falls.

In a statement released by Ministry of Finance spokesperson Chileshe Kandeta yesterday, the Ministry of Works and Supply has received the largest share at K165.2 billion for use towards road maintenance activities by the Road Development Agency (RDA).

Kandenta stated that K6 billion had been released for construction of new office blocks in Lusaka and Chongwe and an additional K6 billion for boarder facilities at Katimamulilo, of which K2 billion is for construction of houses and K4 billion for other boarder infrastructure.

Other allocations included K7.6 billion towards the completion of remaining works at Chirundu border, in line with the Fifth National Development Plan (FNDP) goal of having well-developed and properly maintained quality infrastructure for sustainable national development by 2030.

“Government has, among other resources, so far released K440.8 billion for capital expenditure towards infrastructure development and rehabilitation programmes approved by Parliament as part of the 2009 budget. The release of K440.8 billion represents 24.7 per cent release out of the K1. 781 trillion total capital expenditure budget planned for 2009,” stated Kandenta. “The release of 24.7 per cent of infrastructure funds for 2009 is clearly consistent with our fiscal policy focus for 2009 which is geared towards increasing expenditure on infrastructure and social services. It is also in line with the government’s objectives of encouraging diversification and enhancing competitiveness.”

And Kapwepwe last week told a joint government and donor forum that was reviewing the implementation of the Road Sector Investment Programme (ROADSIP) II at Chaminuka Lodge that there was need for prudence and prioritisation in the allocation of resources as the government’s revenue base narrowed.

Kapwepwe said funding to meet the needs of road sector remained the biggest challenge for the government.

Labels: CHILESHE KAPWEPWE, INFRASTRUCTURE

posted by MrK @ 2:11 PM