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Alba Iulia
Saturday, January 22, 2022

Government borrowed over domestic threshold last year – Ministry of Finance

Economy Government borrowed over domestic threshold last year - Ministry of Finance

Debt

Ministry of Finance Permanent Secretary Felix Nkulukusa has dismissed fears that increased domestic borrowing by the government will limit the growth of the private sector in the country.Mr. Nkulukusa said the K13 billion domestic borrowing threshold will enable government to borrow within the law as opposed to the current status where domestic borrowing as of December last year reached K17 billion.

Mr. Nkulukusa said the legislation to increase the country’s domestic borrowing threshold has long been in existence and that what government has done is to merely legalize the threshold which was formulated by the previous Movement for Multiparty Democracy (MMD) government.

He said it is for this reason that fears that increased domestic borrowing will affect the private sector do not arise considering the fact that government borrowed beyond K13 billion last year.

The Private Sector Development Association (PSDA) expressed concern that the country’s increased domestic borrowing from 200 million kwacha to 13 billion kwacha will limit the growth of the private sector as banks in the country will be more motivated to lend to the government than the private sector.

The Ministry of Finance permanent Secretary was speaking in a telephone interview with Qfm news.

23 COMMENTS

  1. You have managed to confuse me! So it was all about legalizing a crime committed by Govt? If the Govt could borrow K17 billion illegally, what would stop them from borrowing beyond the K13 billion threshold?

    • Indeed it appears government wanted to legalize the crime they were committing. The permanent secretary has not allayed our fears but confirmed our fears.Gentleman what we have here is a very irresponsible government.They seem hell bent of destroying everything we hold dear- whether its really intentional or due to ignorance one can only wonder.

    • There is nothing wrong with this!
      This money has been used to good use, as evidence by anyone who has eyes

      LT that is an awful picture of debt you have there.

      Thanks

    • ba PF tribal politics will not take you anywhere. Just accept that you lost the Katuba elections because of your lies. You also lost because you wanted to impose a bemba as an MP in a predominately lenje area…..what did you expect to achieve? Your opponents of course capitalised on that weakness and exploited it. It’s politics bane. UPND lost the Livingstone seat because they imposed a foreign candidate and they didn’t cry tribalism when PF campaigned by highlighting that fact.
      In Katuba, Nevers Mumba used the same tactic HH used to appeal to the voters to support a local candidate and no one called him a tribalist.
      Bane politics can be tough if you don’t know how to satisfy peoples expectations.

    • The current leadership doesn’t give any confidence! Did the MMD government go above the threshold? I have noticed that these PF guys are myopic and not coming up with strategies that will help the nation in the medium to long term. It is a reactive government. Really embarrassing!

    • You want to know why? Because these CRIMINALS are now trying to hide their CRIMES!

      What do you expect from LIARS and CHEATS?

      Sata and his PF belong in JAIL, not in Government. 2016 is coming!

    • This govt is a fraud full stop. They are over borrowing because they have no master plan in place and do not respect institutions of governance which regulates the powers that be. Hence it is not even in their interest to put a constitution in place which will call for more regulations of things like borrowing without parliament approval.

  2. “which was formulated by the previous Movement for Multiparty Democracy (MMD) government.”
    Have you guys done anything you came up with?

  3. These are the results of having dull people running a country, all they want is money.

    And dont accuse MMD, PF has been in power for almost 3 years, how can you still be depending on strategies and policies formulated by MMD- this might explain the current down fall of Zambia, you cant be implementing policies made by another regime-You might as well call back all MMD former ministers to help you.

  4. for that same reason mmd was booted out.people thought youre better. now you’ve confessed youre worse than mmd, we will certainly boot you out come 2016. at this rate any other person is better than pf. WE ARE BACK IN SERIOUS DEBT AS A COUNTRY

  5. When PIGS can’t fly, the govt justifies as follows:
    —Weakening kwacha is no big deal, all currencies are sliding
    —People cant eat a constitution, it’s a mere piece of paper
    —We are doing it because MMD did it
    —etc
    Indeed a PIG cant fly (Party and Its Govt)!!! Save your prayers for later.

  6. There’s more to governance than road building. And built in reverse order for that: build 2 roads around sioma, forgetting about a dual between Lusaka and Kabwe, and wonder why road carnage continues in Chibombo!

    This PIG (party and Its Govt) will never fly, save your prayers.

  7. I like the depiction in the image but you can still do better. Leave the word debt the way it is and replace the character down there with a recognizable face! eg ABC or MS…

  8. And clicks like Mushota etc, still think pf is the way to go, don’t just open up yo eyes, attach a human heart to your comments…Zambia is heading the wrong-way…..

  9. So they had already borrowed. For sure, may be we should bring back MMD, because all I hear is ”which was initiated by MMD”

  10. This is normal and happens everywhere.Get over it and stop whining.You don`t just have to condemn everything for the sake of it.

  11. Maybe you should pay that debt then you will know it’s not good to live on debt, your future will be spent paying a huge debt that keeps increasing, our future kids will be made to pay for huge debt accumulated by these fossils

  12. This is like the American debt ceiling wars – you are raising the threshold for monies spent! What is there to debate about other than to negotiate on what prudence must be taken for future debt? Dummies!

  13. Nothing new. It has been Hon. Chikwanda usual procedure to mislead the Parliament and then legalize previous wrong doings.
    It is unfortunate that most MP cannot understand English and Grade 8 maths its well above theirs capabilities.

  14. Actually this government is living like its citizens, except most of the citizenry defraud their employers to spend more than they have. This includes commercial activities during employer’s time. I am hoping that government has made better use of it’s borrowed monies so that, unlike it’s many citizens, it does not end up with luxury things that cannot be maintained or sustained…

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