Page 17 - THE 2024-25 MID-YEAR BUDGET REVIEW STATEMENT

conclusion of contract price adjustments, scarcity of forex

and other contractual bottlenecks.

Overall Balance and Financing

29. Madam Speaker, the overall balance in the first half of

the 2024-25 financial year is at K950.9 billion, against the

projected K897.2 billion, representing a variance of 6

percent. This is on account of lower than envisaged revenue

collected in the first half coupled with higher than planned

expenditures largely on compensation of employees. The

deficit has been financed by net domestic borrowing of

K908.2 billion and foreign borrowing of K42.8 billion.

PROJECTIONS FOR THE SECOND HALF OF THE FINANCIAL YEAR

30. Madam Speaker, the projected 2024-25 budget for the

second half has therefore taken into account the budget

performance during the first half of the financial year, the

available fiscal space and the need to contain expenditure.

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