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Alba Iulia
Friday, May 14, 2021

We have $2.4 bn in reserves, budget collapse talk premature, unwarranted and mischievous-Sata

Headlines We have $2.4 bn in reserves, budget collapse talk premature, unwarranted and...

President Michael Sata
President Michael Sata

President Michael Sata has dismissed assertions that the Patriotic Front (PF) government’s national budget has collapsed.

Mr. Sata has therefore described such claims as premature, unwarranted and mischievous.

“ Our foreign reserves currently stand at about US$2.4 Billion while the country has recorded over US$2 billion in investment pledges in various sectors of the economy in the first quarter of 2013,” President Sata says.

“Similarly, non-traditional exports grew to US$530.7 million in the quarter of 2013, compared with US$500.9 million recorded during the same period in 2012. It is therefore, irresponsible to engage in extreme talk amidst such a robust national economic performance.”

The Republican President says this in a statement by his Special Assistant for Press and Public Relations George Chellah, in Lusaka today..

In line with the PF manifesto’s commitment of promoting inclusive growth and social justice for all, the government is running an activity based budget and has continued financing projects and programmes judiciously, President Sata says.

“The focus of the 2013 Budget is to facilitate accelerated and sustained economic growth that translates into tangible realities for our people such as generation of sufficient and stable jobs, a redistribution of income and opportunities in favour of the poor, access to basic services and a general improvement in the standards of living .

“Consequently, we have made substantial allocations towards the health, education, water and sanitation and local government sectors. Other interventions have been targeted towards facilitating sustained growth in the agriculture, tourism, infrastructure development and manufacturing sectors, ” he says.

In order to guarantee the execution of pragrammes and activities, the President has directed the Treasury to ensure that programme implementation reports are submitted by Ministries, Provinces and other Spending Agencies (MPSAs) prior to receiving subsequent funding.

President Sata says the PF government is working tirelessly and with greater urgency to ensure that all priority sectors of the economy flourish within the projected benchmarks.

Meanwhile, President Sata has dismissed reports that he intends to substitute finance minister Alexander Chikwanda with a named former finance minister, describing the reports as cheap careless gossip.

ZANIS

75 COMMENTS

    • Why did you then go and borrow Euro Bond kaloba subjecting the country to high interest rates when you have money in the bank. PF removed the subsidies to meet Euro Bond interest payment and you would think such a statement will be presented by the President himself rather than his personal assistant.

    • Why did you then go and borrow Euro Bond kaloba subjecting the country to high interest rates when you have money in the bank. PF removed the subsidies to meet Euro Bond interest payment and you would think such a statement will be presented by the President himself rather than his personal assistant.

    • Actually, foreign reserves are also foreign import cover. this money is like insurance for the country in times of emergency. It is money that can be relied on if the country were to find itself in a crisis.

      Usually they will attach some period of time this amount of money can cover the country through imports before all goes bust, like many of you bena Goncalves.

      Countries like Botswana have these reserves as import cover for years. Now, the most important message you have to get is the budget is on course. The issue of the budget collapsing has been raised by politicians like Nawakwi and echoed by the likes of HH… The head of state had to respond to assure the nation. all the institutions you mention do report to the Head of State who the most reliably imformed person in the…

  1. this goes to nawakwi who yapps all the time as if she is at orgasm sorry for short of words.
    the big man has put it clear now.go and hung yourselves on ZWD

    • Typical of gullible PF cadres, what makes you think this addresses Nawakwi’s concern? You are very gullible my dear

    • Notorious, cant you see that this man does not know what he is talking about? You must also remember that Nawakwi is old enough to be your mother.

    • Notorious no data pali economics ,it is not just yapping the Big Man(Mr President) as well no data reserves na budget they r not one and the same thing,palibe na connection even u cn hav o those reserves and still hav a poor budget mudala ,so just coz the president has spoken the word doesnt mean its tru,, imwe dimwe pipo wu used to follow the most inteligent guy in class even wen he is wrong wen he say answer ni B u o put B……………….

  2. Pf nafuti nafuti ! Seleni tubombeko ! Poor opposition who knows nothing but passing alarming statements to their gullible audience.The earlier the opposition leaders removed the alarmists in them the better.I wish you a long life my dear king Cobra and your crew !

    • So if Sata tells you he is the monkeys uncle will you believe him? how do fellows like you get to be duped so easily?

    • Ba Zebige this is embarrassing, you got -13 compared to just +2 votes. Why you still in the boat?
      Zambia has $2 billion, but Bill Gates has $50 billion. He can pay Sata and feed his entire PF family for at-least 25 years.

  3. Mr President, sorry to steal your thunder, I think there is a difference between budget and savings. It is possible for a budget for a prticular year to collapse and the only way you can fix it is to deep your hands into your savings or borrow from somewhere. This is simple home economics.

    So, are you saying that even if the budget collapse you will deep your hands into the savings left by the MMD and the figure you are quoting is what MMD left. Can you give us a true update of current reserves Mr BUFI

    • Ba Gumugunu, chela is the public relations officer that is what he is paid for. @ White House press secretary shanishani uko, Big ups bwana President, you are five years ahead. 2016 you still have my vote!!

  4. Have you head ba useless Opposition? We have $2.4 Billion in foreign reserves ba mambala imwe!! you are dealing with an intelligent leader. Just sit and wait to see mother Zambia become a better place for all, not just politicians.

    • Iwe wine uli wa bufi. The mandate is 5 years. But because you don’t reason well, you can’t differentiate between politicking and hard developmental work.

  5. ”the country has recorded over US$2 billion in investment pledges in various sectors of the economy in the first quarter of 2013,” President Sata says. ……Ukwa please, those are investment pledges. Give us figures of how much country is spending in byelections, ministry allocations, and capital expenses and compare with what is remaining in the treasury. ….and ukwa please address the nation, stop speaking through chella

    • Things start with pledges bakaamba. Even at your wedding people pledged to help you. Out of all your 2000 relatives at least 20 fulfilled their pledges and you now have your Mrs.

    • @ Chindakwanda nusosa!! Even ba Pentecostal they pledge for the construction of their churches, who are we???

    • Please PF Kaponyas Investment pledges have nothing to do with the 2013 National Budget. It is the 2013 Budget that PF has blown away with their impulsive spending. Your Sata won’t raid those ‘investment pledges’ to spend on you because that is private money which the owners want to investment in return for a profit!

  6. Where does the opposition get the numbers? Why tell the nation lies. Seeking cheap popularity. We love honest opposition, not fake talk.

  7. Indeed our reserves have collapsed from US $3bn during RB’s tenure to US $2.4b and the ignorant Sata guy confuses budget with forex reserves.Economically illiterate PF disaster is ruining our economy.

  8. reserves currently stand at about US$2.4 Billion….true but GRZ does not have access to this money. Most foreign reserves tend to be debt that a country owns. An example would be the Chinese owning American debt or bonds. This fact does not preclude the fact that GRZ is running out of money due to gross mismanagement and incompetence. I see the president also talked about pledges. How can we rely on pledges? It doesnt change facts on the ground. Honestly we need to be self sufficient instead of relying pledges we don’t know will happen. GRZ should just come clean and admit to their incompetence.

    • The president does not understand a thing about budget, reserves, pledges, projected revenue. things are written for him and submitted to the press, so please do not overload him with things he can understand.

    • @Politicians neither do the people who advise or write these little speeches for him. Everyone is in the dark. It like a blind a person leading another blind person.

  9. reserves currently stand at about US$2.4 Billion…yes but GRZ does not have access to this money otherwise no statement would have been issued. These reserves probably consist of debt or foreign bonds the government owns whose expiration is probably in the distant future. This statement changes nothing on the ground. The fact is that GRZ is running out because of gross mismanagement from the current regime. I note that the statement also mentioned pledges. How can rely on pledges in this day and age. Time to be self sufficient and stop wasting money on silly by elections.

  10. Mungulu boys everytime it opposing @you have manage your cabins,just good at updating stupidy articles shaaaaa pf nimbama

  11. Is it state house or minister of finance who should give that statement in parliament! I alwayst confused with how things are done in Zambia.

  12. On the contrary, what is actually irresponsible is for a head of state in a democracy to call his electorate ‘irresponsible’ when they genuinely question clear budget overruns, e.g. by-elections which Miles Sampa clearly said are now using contingency funds over five times the original allocated amount. What is irresponsible is for a head of state to hide behind George Chellah’s poorly drafted press releases and completely fail to hold a press conference in his own Country and at least make an attempt to clarify issues, e.g. why oh why the Govt found it fit to order armed Soldiers to go and kill its own citizens squatting on Zambian soil. Why? why? That, Mr President is what is actually grossly irresponsible, and the buck stops squarely with you. Period.

  13. Really, did Parliament budget to exhaust the reserves left by the MMD administration, in the 2013 budget? Buhata! Mwa puma! This government is committing illegalities. They budget for one thing and spend on another. What is the logic spending time and other resources passing a finance Act only to flaut its provisions – bloated cabinet, unplanned for provinces and districts, universities, stadia, removal of subsidies and all? Can this regime tell us the equivalent projects where any savings from subsidies will go in specific terms – they should not simply generalise. They should show us the list of those projects – over and above what has already been budgeted for, to enable the people to balance the savings with the corresponding expenditure.

  14. Shameful! This PF regime does not know the difference between foreign reserve holdings and an annual national budget?

  15. Shut up u dogs who claim to be knowledgeble yet u are dunderheads ,fire without heat.Wait for 2016 .U will keep on crying while we move. Sata o de way! Actually u re de pathological liers, Sata nd pf have a 5year mandete to fullfill o de promises.

    • iwe chitoshi! you cant see that your old man bald head confused, he does not understand what he is talking about… reserves are reserves strategically reserved for future use,,, and the 2013 buget is for use now in 2013…unless he is saying that when he goes over budget he will get money from the reserves,,, meaning that his budget has collapsed

      iwe ka osmore.. uli kakopo sana!!!

  16. Good evening

    Figures speak for themselves. All mischievious lies dissipate when the truth becomes plain enough for all to see.

  17. honestly wth dat investment and reserve why allow inflation?look @ Kwacha versus Dollar,cost of living,transport and communication,why r teachers and other civil servants crying? u lied to da pipo of Livingstone about Toilets,can we trust wat Chella has writen,Economically we r not stable and watch da rate we r losing it.Don’t follow cadres comments as Zed Cadres don’t think only support.

  18. Why hide in state house when disclosing such important information to the people of Zambia? Why not hold a press conference where the local & international media can have an opportunity to pose questions to the president and his entourage of ministers???
    …..Lusengo lwa mbwa, mwaa ????

  19. A budget is run on basis of income and expenditure. Reserves are not part of a budget but a balance sheet item. Investment pledge are like a dream you do not really count them until they actually mature. This is just yet another attempt to hoodwink the people with an outburst.

    • Ba Goncalves you are too dull. The article has not just talked about the budget, it has also mentioned investment pledges. so this is not out of context. Grow up troll.

  20. In Zambia, the budget is just an academic exercise. All presidents, except may be Mwanawasa, have shown no respect for the budget. In developed democracies, the budget is enshrined in law once it is passed. In America, the president has to ask congress for more money if the budget falls short. Any unauthorised expenditure would have serious consequences for the president. In Zambia, you have a situation where some retired civil servants have not been their terminal benefits for years while at the same time the government is spending an obscene amount of money on trips, bye-elections and other things that are not in the budget. It would not happen in proper democracies.

  21. Tonga bull musata ny..ko why dont u listen wht the President is teling u? U thnk Hakahi votela Heka wil get to plot 1 with yr foolish regional groupng & think can influence Patriotic Zambians? Wai lasha ula beja begining frm yr perceived inner stronghold mwana u wont ve any!Agree if Hakahi votela Humwine can win an election to day?Definitely no chipuba! But why the hog go lamenting insatiable inuendos like maner.Wailasha!

  22. Why statement from statehouse and not BOZ on foreign reserves? Better from experts than political!

  23. Of course the president and his government is working. That explains why all roads are being built, all hospitals are fully stocked with medicine and all districts have schools fully stocked with books, unemployment is at a new all time low.
    Plus a new people-driven constitution will be delivered to us all within 90 days. HEMCS has been honest and on point throughout his tenure, there is no need for him to start lying now. The $2bn pledged money will come and we all live happily ever after.

    The end.

    #Bufi

  24. To be fair though, this govt has been accused of depliting the foreign reserve account, hence the clarification. I really doubt that they don’t know the difference between a BUDGET and a FOREIGN RESERVE ACCOUNT!

    By the way, a foreign reserve account always fractuates depending on the economic activities of a country outside its borders. So if MMD left $3 billion in the foreign reserve account and now it is at $2.4 billion, there is nothing strange about that.

    But surely the PF govt as to be very careful with excesive budget overuns, this is what is likely going to torpido their agenda if they are not careful about it. Because execesive budget overruns, from year to year, can easily turn into unsustainable budget deficits and soon we have a “Greece” or a “Spain” on our hands!

  25. @Ndombe or ndobo keep on insulting kaili ulishilu just like yo hh .for yo info start amending yo regional party’s constitution so as to allow yo dog leader 4 2021 elections. lol!Pathological liers !Ndobo ulichikopo iwe.l wish u knew how st upid u are

  26. sata needs to gain stamina and address the nation on many issues affecting the Country. And he should be ready for questions from media, NGOs etc. The government is playing retard by remaining quiet .

  27. Sata & Pf viva!Reserves indicate the liquid worth fr borowing.Lenders will always ask fr reserves balances before lendng out money.And this does not include our euro bond credit facility in our zambian bank account.The reserves adresed by the President re near ter or quicker financing instruments that re hieasily convertible to cash.They re near cash instruments whose financing no matter period utmost losses re immaterial or insignifi ant.The reserves referd to re near cash instruments. PhD,MBA Finance

  28. All those useless figures are not helping the unemployed who voted for you. Where are the job? People still sleeping on the floor at UTH. BUFFFFFFFFFIII

  29. I dont see any issue here,the budget over run was also confirmed by Miles Sampa a week or two ago.Can someone rememind me whether Sampa is now part of the opposition.Any normal person would expect a budget over run with these daily bye elections.Let Sata tell the truth for once because we already know that he is a pathelogical lier all his life.

  30. The State House PR machinery at work. Everybody knows that our dear president cannot articulate issues without breaking off into insults or vernacular. Despite the tag of being an action man, he is a coward after all. When did he last visit the electorates just a stone throw from State House? The man is moribund and is afraid to face the very people that he duped in the first place.

  31. This is laughable. Reserves are not a part of the national budget. It can come in in the balance sheet, but not in the budget. The budget consists of what the country hope to raise in revenue against intended expenditure. when the expenditure becomes more than revenue, the budget is bust simple

  32. Actually, foreign reserves are also foreign import cover. this money is like insurance for the country in times of emergency. It is money that can be relied on if the country were to find itself in a crisis.

    Usually they will attach some period of time this amount of money can cover the country through imports before all goes bust, like many of you bena Goncalves.

    Countries like Botswana have these reserves as import cover for years. Now, the most important message you have to get is the budget is on course. The issue of the budget collapsing has been raised by politicians like Nawakwi and echoed by the likes of HH… The head of state had to respond to assure the nation. all the institutions you mention do report to the Head of State who the most reliably imformed person in the…

  33. The fact the you supposedly have this money in reserve does not mean you should continue with all these useless RIGGED elections. Schools need to be built. In some areas children have their classes under trees and when it rains there is no school for these poor kids. What kind of heartless government are you? You only have yours and your relatives personal interests at heart. Its foreigners who are setting up Charities abroad to raise money to come and help the needy, the very people that this government want votes from, the people who have been ignored by their government. Once you blow the reserve you will borrow another eurobond, waste of space delinquents.

  34. Not sure how much chindkwanda is paid as a damage limitation officer for PF. The country is already in a crisis.The quality of leadership is seriously inept.We should not sit here praising the gvt when its clearing failing itself as well as failing us. I can not at this point see anything that is working very well in zambia
    My friend always says the quality of leadership is determined by the electrolates.He even gave an example of Egypt who removed Mubarack and could not tolerate the next leader as well..If we all become like cindakwanda then Zambia would be a failed state

  35. Below are the reasons why this government should change its name from PF to BP(Bufi Party).
    – Satas 90 days promise- BUFI
    – PF claim that MMD had printed more money – BOZA
    – More money in your pockets- KUBEJA
    – Corruption will be sorted- WENYE
    – By elections planning and expenditure- BUFI
    In a nut shell we are in serious problems, we have a guy who has no clue about running a family and we have entrusted him with running a country. The question we should be asking ourselves is why dont we have better roads, hospitals, schools etc as our friends in europe, america . These people went through hard times before they came to where they are now. Why can we emulate them?

  36. The president has admitted that the budget will collapse, all he is adding is that the calls are premature for now…the budget may collapse in 2 or 3 months or when civil servant get their increments….but any call for now are PREMATURE.

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