Brief look at Zambia’s 2016 National Budget; focusing on the Health Sector



The Zambian Government in the 2016 National Budget proposes to spend K53.14 billion, representing 25.8 percent of GDP. This is K6.44 billion more than the 2015 proposed budget of K46.7 billion representing 24.6 percent of GDP.

 The 2016 National Budget whose theme is “Fiscal Consolidation to Safeguard Our Past Achievements and Secure a Prosperous Future for All” has been presented in the wake of a sluggish global economy which has hurt Zambia’s economy, thus making difficult for the majority of Zambians to make ends meet.

The Government has had challenges implementing the 2015 Budget because of the fall in copper prices, the depreciation of the Kwacha, higher interest payments and the need to clear arrears for fuel and crop purchases. It is on account of these challenges that the 2015 Budget deficit is expected to widen to 6.9 percent of GDP from the projected 4.6 percent of GDP.

 This has had an undesirable impact on the health sector posing challenges of enhancing universal access. Currently the inequalities and inequities in access and utilisation of health care services place a greater burden on the poor and vulnerable.
This budget focuses on completing the construction of health facilities, as well as recruitment, retention and training of frontline medical personnel.

The Budget also makes room for redirected expenditure priorities in infrastructure development, improving the provision of drugs and medical equipment, and the establishment of the National Social Health Insurance Scheme. It will be of particular interest to see how these will executed.

Comparison of key expenditures in for the Health sector in 2015 and 2016 National Budget as presented by the Minister of Finance


Year
2015
2016
Total Budget
K46.7 billion
K53.14 billion,
% of GDP
24.6 % of GDP
25.8 % of GDP
Total allocation to Health Sector
4,464.09
4,432.85
% Allocated 
9.60%
8.3%
Drugs and Medical Supplies
753.52
754.00
Medical Infrastructure and Equipment
268.24
387,070.83
 
The 2016 budget allocation includes K754 million for the procurement of drugs and medical supplies as opposed to K753.5 allocated in 2015, and K340.7 million for completion of on-going health infrastructure development projects as opposed to K268.2 million allocated in 2015.

 The allocation to the sector also includes K73.8 million for the net recruitment of additional frontline health personnel and K6.3 million towards the establishment of the National

Social Health Insurance Scheme.

The 2015 provided for the allocation of K52.5 million, for the net recruitment of over 2,000 health personnel. However it is not clear how many health personnel Government is targeting in 2016.

 The Zambian government being party to the Abuja Declaration has pledged to increase budgetary allocation to the health sector to at least 15% of the national budget. Allocation to the health sector in 2015 represented 9.6 percent of the overall budget while the allocation in 2016 represents 8.3 percent of the overall budget.

  It is disheartening to note that the percentage allocated to the sector is reducing instead of improving.

Key insights

There will be growing anticipation for the social protection reforms which will include the establishment of the National Social Health Insurance Scheme. Education and Skills Development

There is need to closely monitor the implementation of the 2015 National Budget as its performance will directly feed into the 2016 budget.

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