MINSTER of Finance Felix Mutati says Zambia will not borrow more than the US$1 billion debt ceiling to avoid going into a debt trap between now and December 2017.
On Wednesday, Mr Mutati said Government plans to borrow from local commercial banks to dismantle the K10 billion it owes various suppliers and contractors across sectors.
He said Government will only contract debt that is sustainable to enable it to create liquidity in the economy.
And the donor community has committed US$26 million towards the Public Financial Management Reforms aimed at improving the financial management of public resources as Government aspires to ensure equity in the allocation of the national cake.
Minister of Finance Felix Mutati said the cooperating partners comprising Britain’s Department for International Development, Germany and Finland through the multi donor trust fund administered by the World Bank, which committed US$17 million yesterday, pledged an additional US$9 million.
Mr Mutati said with the Auditor General’s report continuing to highlight serious irregularities in the management of resources by public workers annually, the Public Financial Management Reforms programme remains key in addressing the weaknesses.
“The volumes of misuse, wastage and misappropriation reported are high. Irregularity has been a diet in the public service and we need to remove the fire that cooks the meal as it undermines prudent financial management,” he said.
He said this yesterday at the signing ceremony for the programme and launch of the Public Expenditure and Financial Accountability (PEFA) assessment that will provide the framework for identifying and assessing the strengths and weaknesses in the public financial management system.
Mr Mutati said the attainment of equality and narrowing the poverty gap will be achieved if the country has a well-functioning accounting and financial management system that provides the framework for Government to provide public goods and services.
World Bank country manager Ina Ruthenberg said Zambia will only achieve the growth benchmarks if public financial management is strengthened.
“Our global experiences indicate that an investment of K1 can lead in increased revenue mobilisation up to K10 by implementing good reforms in revenue mobilisation,” Ms Ruthenberg said.
She also said improved budget credibility will go a long way in enhanced service delivery and citizen welfare.
BORROWING MONEY IS WHAT YOU KNOW BEST!
Borrowing $1 billion to dismantle $4 billion of local debt. What gives? Who is lying?
Buck Teeth, Government owes local contractors ZMW 10 billion which translates to $1 billion which is what Mutati wants to borrow.
Now this Mutati who is the MMD runaway is yapping daily without any plan.
That “Zambians’ borrowing to be no more than $1billion” is mere rhetorical response to visionless PF acceptance of more kaloba. Indeed, chimbwi without any plans! Almost 4 months after the end of the financial year, this Mutati mascaraeding as money minister of PF has to date failed to deliver the national budget. You invite dictators of Mugabe & Museveni on tax payers monies yet the civil service hasn’t been paid for 2 months by this violent & visionless PF of Edward Lungusha economy into dununa backwardness.
Poverty & load shedding is now a norm under the incompetent PF magwams.
The Skeleton Key
This next president chipubako panono. Felix need be radical to be felt by PF, not just implementing Chikwanda’ notes.
Felix Mutate should be giving that facial expression Stephan Neu-KfW, not smiling like he just won the lotto.
How funny life is….with so much resources we fail to use them to our advantage. Some Mine in NW province was sold for less than US$1M as a greenfield mine and later sold by the investor for US$7B!!!!!
unbelievable how the country is being run and resources wasted.
How much will be stolen by ba fi colour aba ?This is irresponsible borrowing of the highest order.
Unlike Chakolwa Lungu who signed the constitution without understanding it .I hope time around Mutati had chance to digest what he was signing for ?
This Mutati has failed before he has even started. No man is an epitome of knowledge later alone can do it alone. A country like Zambia should have a think tank comprising of experts from all walks of life politics aside. Mwanawasa delivered because he made use of others by calling for a national indaba which gave birth to the firth national development plan and vision 2030 active even today. Consult people like Magandes and Musokotwanes before you plunge this country into further poverty just like your predecessor. You are busy borrowing before you give us your road map for the next 12 months.. were is the budget?
I am really at loss on why this Government is fixated on this short term expensive financing its a quick but expensive and disastrous route. The 1b USD he is talking about will more than treble by the time they call in their loan. if it were being used to generate income it would make a bit of sense. But budget support is just that consumption. Minister consider borrowing one third from the IMF, then the rest could be concessional loans which have a longer life span and are less expensive. You have a money spinning machine in our arable land. Please Felix we know you are an accountant and might not fully understand factors of production. Heavily invest in farming and feed the region you will never need to borrow again!
Borrowing for consumption, U See how sjopet this government is? continue dancing to dununa reverse u will wake up oneday.
The fact that the nation is still the most hungry on earth after 53 years of self-rule speaks volumes about the caliber of leadership. The budget is perennially dependent on donors and borrowing. If you are a family whose budget heavily relied on charitable neighbours would you command respect from your wife and children? Zambia sits on unbelievable fortunes but sheer stup!dity has prevented the leadership from seeing it and harvesting it.
WANTANSHI YOU ARE RIGHT THEY DO SEE IT BUT IT IS A MATTER OF WHAT CAN I GET FOR MYSELF AND BUGGER THE CONSEQUENCES. SELFISH PEOPLE.
Mr Mutati this is not a laughing matter. It seems your colleagues in government don’t understand the situation we are in. To them it is business as usual. I don’t doubt why Edward did not give any ministry that will change the course of the economy to PF but MMD. PF is full of dumb heads.
WHAT HE MEANS IS THAT THE IMF CAN ONLY GIVE US 1 BILLION DOLLARS ONLY NOT TRY AND SOUND LIKE IT IS A CHOICE MADE BY HIM. HE IS DOING IT IN DUNUNA REVERSE TERMS ALIAS GOING ROUND THE TRUTH.
Th headline and th details of this article are in opposite direction. The headline reads “to be more than $1bn” the details say “not to b more than $1bn” so what has mr Fix it Mutant said?
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