I have a launched a petition against the proposed government borrowing by Minister of Finance Chikwanda. Our goal is to show and record in history that we stood against this. So when this government fails to pay and we default history will not be harsh against us because we stood firmly and asked the government to instead cut expenditures as opposed to borrowing money to cover their financial gap.
The result of this gap is pure gross financial mismanagement; and not the highlighted desire for infrastructure development. We can not continue chasing a development plan we cant afford; we need to live within our means; alternative the government can improve on revenue collection by addressing the corruption that is rampant by tax evaders as well as the civil servants; we cant force our children to pay for the mismanagement of this generation.
Lets make a note in history to that we were against the $2billion proposed borrowing by the government. While we are very much aware that borrowing is not a problem in of itself, we feel the government of Zambia (2011- 2016) has not tapped out all alternatives of bridging the gap which can include a combination of strategic tax increases as well as expenditure cuts. The Zambian government continues to dig us deeper into debt to sustain a development plan that the country can’t afford. We need to aim for a balanced budget, a budget that can sustain meaningful development, and work harder at improving our revenue collection methodologies as well as cut expenditures on government spending.
By George N. Mtonga II
I agree totally, Chikwanda and PF are leading us to the the cliff. Ultimately, though Edgar Lungu should be held responsible.
We need to borrow and borrow. How do you hope to do the Solwezi road? How do you hope complete the universities?
Borrowing is not an issue in it self but if you borrow and you have no means of paying back then it is a problem.
Our Govt has confirmed that they have run out of money so this confirms their inability to pay
Also if you are borrowing to finance some projects which do not even result in financial benefits then it is a disaster. Yes the roads built in the compound roads are nice but where will the money to maintain them come from. These poor quality roads will need ongoing maintenance but as a country we do not have that capacity at the moment
Why not borrow and use the money to invest in agriculture e.g if Govt borrows $20million what about buying the farming equipment and loan them to farmers at low rates. These are some deliberate policies which work well in the long run. to be…
ZR was given the part of the Euro Bond, what do we see after the money is exhausted, a used train from RSA, a few rail concrete sleepers and crushed stones. Yet they promised to replace the rails to increase the speed of the train from 20Km/h to the normal 80Km/h. Has that been done, NO. Cross the rail line at Chisekese as you head to Monze, you will still see the old rotten wooden rail sleepers left by Sir Cecil Rhodes but hidden to new crushed stones.
More money in your pockets was a slogan that was resoundingly bought and put PF in government. Less money in your pockets is a harder slogan to sell; they won’t do it.
Why do Zambian oppositions complain about anything that the government does? What would they do if they were in power? They always want to portray to ordinary citizens that the PF has failed. They think they are the best economists. Give the PF chance to govern this country as its the only Party that was mandated by the Zambian people to rule. Even thugs like the so called George N Mtonga II can just wake up from drinking kacasu and start castigating the Minister of Finance. Think before you start yapping. The Euro bonds and in the eyes of George the infamous $2 billion are not going into Hon. Chikwanda’s pocket but working for all Zambians to better our lives. Even George himself is now moving on good roads. There is no country in the world that does not borrow. Even China borrows, etc.
For the unbelievers $4 billion spent and the economy is not improving. Tells you something.
Did you need a calculator to divide 4 billion by 5?
Sorry Bro, I was being very trivial. I set through the 16 minute video and you really broke it down for these guys in government whose primary concern as you put it is to stay in power. I endorse your message and said no to Mr Chikwanda’s way of running our poor country’s finances because he won’t be there when our children are being affected by his reckless borrowing. Kudos to you.
We can borrow even America borrows. But Uncle Alex must resign to pave way to one with better ideas.
USA borrowed @ 0.75% and flooded the market with cheap loans @ 1.75% and did create millions of jobs!!!
Senile lunatic borrows $1.75 billion at 7.5% and then mops-up local liquidity to service that borrowings and force rate to 25% and starve local SME of developing funds.
Do you see the difference?
@Aleshaday, your analysis is too complex for Ndaje Kahks, he/she has humble education. His contributions are always devoid of any intellect
Oh my word this is a first. No response from chief PF cadre Ndanje? Too deep I know but there must be someone in PF with tuma brains who can explain…. no….come to think of it there isn’t.
Every country borrow. Where do you think the money will come from to build roads, sink boreholes, build universities, build schools, build bridges, build airports etc? Unless you want to have all these infrustructures built in 30 or 40 years then yes we shouldn’t borrow. Right now, thank God, Sata’s vision of massive infrastructure development continued by Edgar Lungu has removed shame as we travel abroad. Previously Zambia was a bush, no shopping malls, potholed roads, substandard houses but because of borrowing for the right reason, we have Link8000, Pave2000, 650 health posts, Link400, Chingola-Kitwe dual carriage way and many many more projects. How do you expect to fund all these projects. The debt will be paid back.
@BBC are you aware that most of the projects you have mentioned here have stalled and why?
@ Joe try to watch a documentary called “How America was built”. Building a country is not a straight forward thing. There are obstacles. It is just like a certain sport where you have to ride a bicycle, then climb a mountain, then swim, do triple jump, high jump and then 8km race. America went through thick and thin for them to reach where they are. They borrowed. Even right now America is still developing its infrastructure. Who are we to sit back and relax when we are almost 300 years away from America in terms of development?
@BBC don’t compare America to our corrupt systems where every contract awarded is inflated and the difference is pocketed by individuals. If America had allowed corruption at the rate Zambia is going there would have been no development there. Why do you think Chikwanda is hesitating to give a breakdown of how these loans have been spent. He is scared of experts challenging the figures.
But how will sata’s projects be completed without borrowing? How is the KT-Chingola dual carriage way going to be done? Those against borrowing are UPND members so that come 2016, they will point at Sata’s stalled projects as PF failures
30 to 40 Years to develop what? We have been independent for 50 years in case you have forgotten!
As a tax payer I want to know how the 2 euro bond monies were used before I think about further borrowing. Am sure minister Chikwanda can easily give us a break down of these figures.
No government runs on zero debt. If you stop chikwanda from getting that money is ur ass goin to give zambia the needed money. Nindalama za nioko!
You can borrow money to purchase or spend on items that dont generate money, thats luxury,,,we are not saying no to borrowing,,we are saying no to Chikwandanomics….Chikwandanomics = borrow with no solid plan to pay back. its simple! we are going deep into debt
So if you were the president of Zambia, you would go to villagers and tell them that they would never see tarmac in their areas because such roads would not pay back? What a calculator president!!
This is what you need to show the empty tins in cabinet and the lazy bone in State House! !
My friend all you are endorsing is that Zambians will eventually pay the debt. I am supporting the borrowing for infrastructure investment and development. If the $2 billion you are crying about is going to be borrowed to educate a child in Chienge at Luapula University, that to me is a good debt. Even if it takes the Child of that graduate from Luapula University to clear it, for me it was worthy it. This chap is so short sighted and smokes weed.
That is why you will die poor and your Zambia will be poor for ever because you are scared of borrowing….which country hasn’t borrowed except for the oil rich countries? Even if the tax system was reorganized, Zambia’s population is too small to generate the kind of resources needed to finance the large infrastructure gap.
When Sata said he was going to repair all roads etc. where did this moron think the money was going to come from? From Sata’s pocket? Even Hikainde who is stinking rich will not use his personal money for national development. You say Levy’s tenure had a lot money why was there no road repairs? What is the use of boating of being rich when you sleep in a shanty? All the same Mr. Chikwanda must resign
Borrowing to steal, actually Chikwandanomics is Squandernomics
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alternative the government can improve on revenue collection by addressing the corruption that is rampant by tax evaders as well as the civil servants”
We lost control more than 20 years ago. Today even this writer could be a culprit of tax evasion. To start with there is no data to tell you who is who and what they are doing. The exercise would be very expensive and futile. Corruption starts with you. A minister cannot be corrupt in a vacuum. He will only be corrupt with another person and that can be you.
Start by cutting the bloated government and foreign service for carders then you will save.
Patrick @ 13. I agree! Start by cutting the bloated cabinet. USA has a population of 300 million. It has a cabinet of 17 plus the Vice President. Zambia with 14.5 million people has a cabinet of 30 Ministers, 32 Deputy Ministers & 10 Provincial Ministers – All with fuel and other allowances, plus a brand new 4 x 4 Vehicle, etc. We can start from reducing on this bloated cabinet!
i agree and i have joined the campaign. Chikwanda must go.
Well articulated #kaloba.com
Chikwanda kuya bebele.
if not Lungu you will be next. Will wont mind HH since we didnt mind about you
Very educative. Thank you. You broke it down so well for us the laymen.
3.2 ?Obatala Anabwera- *****z I have told you not to engage me in your stupidity. There are other bloggers you can engage. What education have you when you are always using vulgar language. What is complex about borrowing. You son of a useless Upnd Cadre phool. You have no friends to talk to?
@3.2?Obatala Anabwera. Don’t comment on my postings ever again. Education? You cant even contribute to national development except being tribal and you say you are educated? No wonder Zambia will be lagging behind even after churning out useless people like yourself.
If President Lungu wont reduce the number of deputy ministers,reduce the number of permanent secretaries and his non productuve trips then this goverment is a wasteful investement.We say no to another borrowing
Just another manifestation of Sata’s poor judgement as he is the one who appointed Chisquander. Rb and his team were much better economic managers.
U have well articulated it, but i have another side of the coin.
the huge budget deficit can not only be blamed on the pf government but on the civil society groups, and opposition political parties in our countries.
first we can look at what has necessitated the budget deficit
1. presidential by election
2. repealing the 2015 mining tax regime
3. lifting the wage freeze.
mostly the repeal and and lifting the wage bill. unions, and opposition political parties pushed government to reverse the 2, and 3. which have significantly contributed to the wage bill, and of course the presidential by elections. so let the trade unions and opposition political parties take part to be blamed.
talking of the current state, the debt ceiling has to be raised to avoid a government and…
I am inviting all Zambians to join in this movement so we can bring these powers that be to be accountable, There is nothing wrong with borrowing when there is accountability and fiscal management. Politicians have run down the country e.g going for medical treatment outside Zambia an insult to the people of Zambia and the Medical Profession spending over $5 million dollars every year why not take that money to invest in developing the health system in Zambia, All it will take is your President with a stroke of a pen the truth is Zambia has never had leaders.
Zambia will be like Zimbabwe in the next 36 months