Friday, March 29, 2024

Fuel subsidy removal paying off -Mutati

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 Finance Minister Felix Mutati (c) responding to the media after inspecting the construction progress of King Lewanika University during a Post Budget Hearing Visit in Mongu on Saturday.
Finance Minister Felix Mutati (c) responding to the media after inspecting the construction progress of King Lewanika University during a Post Budget Hearing Visit in Mongu on Saturday.

The removal of subsidies on fuel has started paying off as more than K1.6 billion has been paid to contractors across the country from the money saved after the removal of subsides on fuel, Finance Minister Felix Mutati has announced.

Mr Mutati said while the decision to remove subsidies might have seemed cruel, Government had managed to save substantial amounts of money which was now being channeled to sectors such as infrastructure projects.

Speaking at a post-budget discussion in Mongu on Saturday, Mr Mutati said that for government to save more money, the Ministry of Finance was formulating ways to regulate spending in institutions and agencies.

He said the proposed increase in electricity tariffs was meant to stabilise the energy sector and attract investment as the current electricity tariffs were not helping the energy sector grow at the same rate the country was economically expanding.

“We have been able to raise enough money which is now being channeled to developmental projects that will benefit all Zambians. We have since paid more than K1.6 billion to contractors from the money saved from the removal of subsidies on fuel. As a ministry, we are coming up with a common data base for the purchase of goods and services to avoid abuse of national resources,” Mr Mutati said.

He explained that in order to strengthen local investors, discussions were ongoing on how commercial banks could reduce the interest rates on borrowing so that as many Zambians as possible could have access to loan facilities.

He further disclosed that the social sector had been a challenge in remitting taxes to Government and that his Ministry was looking at the best ways of collecting taxes from the social sector.

And Western Province minister Nathaniel Mubukwanu said elections were over and the time to continue politicking in the country was gone, and it was important for the people of the region to contribute to national development.

Mr Mubukwanu said the people of Western Province should work with the PF government because its leadership was dedicated and resolved to take development to every part of the country.

Meanwhile, Western Chamber of Commerce and Industry, Chairman Charles Mutemwa advised Government against embarking on projects that were not budgeted for because that was what led to budget deficits.
[Daily Nation]

16 COMMENTS

  1. Told you, this howderhead was never fit for the job to start with.

    A putzy ( if i got the spelling correct) finance Minister- if that makes sense to some of you.
    Thanks

    BB2014

    • Not sure if the Minister is telling the truth here so this money is actually supposed to be repaying loans or committed to some sink fund towards this he is trying to make us believe that this money is going directly to developmental projects this is a Zero sum approach ….. we know that government borrowed 5 Billion from the central bank for “Operational”purposes and I would like to believe this is the same being used to pay contractors….

    • You mean “RUINING” an economy?!!!

      Because that is exactly what these PF clowns have done.

      Their borrowing on the local market has pushed interest rates through the roof, so now there is no way any local business can afford to get credit.

      They have effectively killed economic growth in Zambia.

  2. so the removal of subsidies was meant to channel resources to the poor as it was said that subsidies only benefit the rich. Im struggling to understand how exactly the poor are benefiting with increased energy and food prices now. Perhaps it is trickle down economics with the payment to the rich contractors eventually trickling down to the poor through the payment of meagre wages which will allow the poor to at least afford a pamela!

  3. Talking about road projects being funded by the excess from fuel subsidy removal is not adding up feligo. Those road projects were funded already by the loans/bonds meaning that money should go were it is needed like improving domestic water supply and sanitation.

  4. When they steal those subsides until there is nothing left to steal they will think of more penalties for the citizens.

    Zambians are paying for the incompetence of lungu and his PF. they do not know that a country can produce wealth.
    .

  5. I remember government through RDA at one point announcing to the nation the amount raised through road tolls and boarder fees collected.now how come mutati is telling the nation when the money was already allocated to developmental issues as he said.not fair mutati

  6. Thumbs up Hon Mutati on discussions of reducing interest rates. First of all, let BOZ reduce the rates that’s when cmmercial banks can reduce the rates. In return local investors will borrow and invest locally thereby stimulating demand and this will help to create jobs for the youth.

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