International Trade Consultant Trevor Simumba has warned that Zambia is in a debt crisis and that 2018 will be a real struggle given the continued stagnation.
Mr Simumba said there is need for government to carry out a detailed expenditure review and impose strict value for money test criteria before making any large expenditure.
“When I first raised the debt issue in June many so called experts doubted my assertions and now the IMF has indicated even much higher debt at 60% of GDP,” Mr Simumba stated.
“We are in a debt crisis and with continued stagnation 2018 will be a real struggle. The Minister has been told in no uncertain terms that he must revise the 2018 budget,” he said.
He added, “during the ZICA budget analysis, I stated to the Minister that the most glaring missing piece was some level of expenditure control and his response was so defensive rather than acknowledging that our problem in the first place stems from poor fiscal management.”
He said, “There is need for Government to carry out a detailed expenditure review and impose strict value for money test criteria before making any large expenditure. Government must also rationalise it’s spending and reduce on costs like travel, procurement and plug all revenue leaks in the system.”
“There is also need to maximise revenue collection from the mining industry. And more importantly privatise or commercialise many of these loss making parastatals that suck money from the treasury.”