MEFMI provides training on budget planning processes and fiscal risks for the Ministry of Finance and National Planning of Zambia

The Ministry of Finance and National Planning of Zambia requested MEFMI to provide technical assistance training on budget planning processes and fiscal risks from 7 – 18 August 2023 and assist the officials at the Ministry to understand the budget planning process, audit and fiscal risk management. The training was intended to prepare officials for the review and finalization of the draft fiscal risk framework for Zambia.

This training was officially opened by Mr. Ringo Zulu, Controller of Internal Audit, from the Ministry of Finance and National Planning, Zambia. After welcoming the MEFMI resource team, Mr. Zulu reiterated the objective of the training. He mentioned that the Ministry aims to develop and establish adequate human resources,  to oversee the budget process. Noting that there is an inherent risk to the budget implementation that impacts policy and regulations, he urged the participants to be amongst the front runners in the uptake and utilisation of the best practices in public finance management.

The Ministry of Finance and National Planning of Zambia has signed a Memorandum of Economic and Financial Policies with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF). To monitor key critical reforms to achieve the facility’s goals, there are structural benchmarks which constitute measures to improve and monitor fiscal operations in Zambia such as the development of a Fiscal Risk Management Framework. The Framework is expected to set guidelines and act as management tools for identifying, mitigating, and monitoring fiscal risks arising from unanticipated expenditure pressures and shocks that may adversely widen the fiscal deficit and impact budget execution over the medium term in Zambia.

MEFMI has supported the Budget and Economic Management departments in the Ministry of Finance and National Planning of Zambia to develop this framework for adoption by Parliament to benchmark and reform fiscal expenditure and revenue. Going forward, the Ministry requires all divisions to be capacitated on policy functions such as undertaking fiscal policy analysis, developing new tax policies, and formulating and presenting the annual budget to carry out these functions efficiently and effectively. The divisions include Economic Management, Risk Management, Internal Audit, as well as Debt department.

MEFMI trained twenty (20) participants from three (3) departments in the Ministry of Finance and National Planning of Zambia. The departments included Economic Management, Audit, Debt and Risk Management. Of the 20 participants, twelve (12) of them (60 percent) were male while eight (8) of them (40 percent) were female.  The training was facilitated by three (3) resource persons, Mr. Wilson Asiimwe, MEFMI Graduate Fellow and Senior Economic Modeler at Ministry of Finance, Planning and Economic Development, Uganda; Ms. ‘Marethabile Hlaahla, a Graduate Fellow and Chief Economist in the   Research Department at the Central Bank of Lesotho; as well as Mr. Senei Molapo, a MEFMI Graduate Fellow and MEFMI Programme Manager.

Prepared by Senei Molapo