Some takeaways from proposed 2027 budget —Lubinda

Haabazoka said the increase could ease the financial burden on families while creating reliable markets for local farmers supplying food to schools.

The agriculture, fisheries and livestock sector will receive K22.7 billion, including K9.1 billion for the Farmer Input Support Programme (FISP).

He said timely access to farming inputs, coupled with the K18.1 billion allocation for roads, including feeder and intra-district roads, could improve farmers’ access to markets and reduce transportation costs.

Meanwhile, communities across the country are expected to benefit from an increase in the Constituency Development Fund (CDF), which rises from K6.2 billion to about K9 billion, translating into approximately K40 million per constituency.

However, Haabazoka cautioned that the increased spending would come alongside higher taxes and levies that could raise the cost of living and financial transactions.

He said the proposed increase in Value Added Tax (VAT) from 16 percent to 16.5 percent, together with higher levies on mobile money transactions, would increase costs for consumers and users of digital financial services.

Higher-income earners and mining investors would also face additional tax measures, including a new 39.5 percent Pay As You Earn (PAYE) tax rate on monthly earnings above K37,000 and a 15 percent withholding tax on dividends paid by mining companies.

Government expects the proposed tax measures to generate an additional K10.8 billion in revenue.

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