Finance Minister Felix Mutati says the economic and fiscal consolidation reforms embarked on in 2017 have gained momentum and are beginning to yield positive results.
A liaison meeting with Zambia’s Cooperating Partners was held yesterday by the Ministry of Finance and their counterparts led by Minister of Development Planning Ministry of Development Planning Alexander Chiteme.
And Mr. Mutati explained that Zambia’s fiscal deficit in December, 2017 was only 6.1% against a budget target of 7.3% a positive performance which is consistent with government’s fiscal consolidation policies.
He also disclosed that total tax revenue collections in 2017 were above target by 4%.
Zambia recorded a 6.1% inflation rate as at December 2017, the lowest record so far in 40 years. With domestic debt reducing from K19 billion in December, 2016 to less than K10 billion in December, 2017.
Mr. Mutati reiterated that Government’s commitment to enhance domestic resource mobilisation and below are the five key areas of reform:
1. Improvement of Economic and Fiscal Governance;
2. Tax policy reforms and tax administration modernisation;
3. Enhanced debt management and improvement in supply of debt data;
4. Revision of Bank of Zambia legislation to provide for enhancement of monetary policy management and administration;
5. Revision of procurement legislation and implementation of new procurement reforms.”
“We will leverage on the vision and full backing of President Edgar Lungu to continue implementing a reform agenda which has positive exponential outcomes and benefits the people of Zambia – without leaving anyone behind,” Mr. Mutati said.
The Minister of National Development Planning Alexander Chiteme revealed that currently a total of 2,450 active and stalled projects located in various locations in all the ten provinces of Zambia.
Mr Chiteme expressed Governments’ displeasure over the unimpressive implementation of some donor funded projects whose poor performance he attributed to delays in project appraisals, prolonged negotiations, protracted approval processes, lengthy procurement processes and bureaucratic staff recruitment and placement systems.
He also reaffirmed Government’s commitment to revive, prioritise, and complete ongoing projects located in various locations in all the ten provinces of Zambia before embarking on new ones.
Meanwhile, the Chairperson of the Cooperating Partners Group and United Nations Systems Coordinator Janet Rogan, who was represented by United Nations Development Programme UNDP Economic Counsellor Ms. Nicolene Nzamba, said the group was looking forward to the continuation of fruitful engagements, cooperation and collaboration with the Zambian Government.
“As Zambia’s Cooperating Partners, we wish to see the full implementation of the Seventh National Development Plan and establishment of a stronger linkage between the budget and the plan,” Ms. Nzamba said.
At the conclusion of the meeting, the two Ministers called on the Cooperating Partners to continue their collaboration with the Zambian Government in order to mutually achieve development interests.
This is according to a statement issued by the Ministry of Finance.
That’s good news… but corruption can wipe that out. You know that and we know it.
All the work you are doing as long as billions are being stolen is useless.
This Mutati is a strange fella, when he was deputy minister in MMD economy was growing at 6.8% and now that he is the MMD PF Minister of finance, economy is growth at 2.8% surely even for dull PF chaps, how can this be good news?
But you are MMD Mutati. Who are you representing?
Ba Mutati Zambia’s economy is on its knees. The SMEs and small scale farmers have been left bleeding from poor economic policies being implemented by the PF Government. Its very unfortunate that within 1 year in office Mutati has killed the local small businesses and therefore increased unemployment. Worse still banks are not providing credit to small businesses. Therefore the economic reforms Mutati is waffling about are for whose benefit. As things stand more investors are now heading to Zimbabwe and Congo than coming to Zambia because of unpredictability of the Zambian government’s economic policies. Money is so difficult to come by that consumer spending is at an all time low just ask any retail business.
dream on ba Mutatiii, only time will tell
He’s not dreaming, he has tangible statistics to back him up. You are depending on watchdog. I think a normal thinking human being would believe Felix and Alex, not you misinformed, gullible and daft diasporans….
@ Zambian citizen u also know that he cannot even convince the IMF of Zambias true debt position. This is also a finance Minister who repetitively indicated that Zambia debt was at USD 17 Bn when addressing his peers and the Nation in Parley only to turn around and say the number was erroneously put in his speech. For someone running such an important office he should have immediately been alarmed by the figure and corrected it himself. So PLEASE don’t speak about numbers from Mutati …the precedence isn’t in your favour
@Zambian dumb citizen, I hope PF is paying you good money to be a dumb uss here and by all means get a life, get a job.
You seem to waste your life here defending the indefensible openly thieving, crooked, corrupt, lying PF leadership.
@Mafikizolo: To be here always insulting and attacking the govt. is f.0.0.lish. How can I live a life of believing lies peddled by bitter people?? I am not a PF card carrying member or involved in PF activities but I work and run my own SME. I just believe in the truth. I will never support your useless lies and bitterness you throw at PF just because they walloped your preferred upnd. When you start practicing civil and real politics, I will also support you. Not vile, vulgar, and bitter politics based on spreading lies and misinformation?? NO THANK YOU!!!!
Felix is a proven liar, believe him at your own risk. Felix needs to get he’s sh!t together, even the IMF can’t buy he’s vibe.
This is off topic but worth posting here to refkect the state of finances in zambia.
The managing director of zesco appearing before committee on budgets said,
50% of power is used by mines 50% of power was used by lusaka and a quarter was used by others.
When i went to school 50%+50%=100% nothing left. Yet this managing director of zesco has found another 25%.
Is that how the finances od zesco are run. Can we now believe any of zesco figures are correct.
This is coming from the head of our major power supplier. How did he get this position if he can’t even reconcile basic figures. Zesco the real zambia
Another corrupt assessment by the corrupt clueless Minister?
Positive in whose interest? SMEs are dying; indivuals are committing suicide; banks can’t lend; government can’t pay suppliers; pensioners are not paid; zero liquidity in the economy; cholera in the cities. List is endless. Please educate me on those positives
Is this another case of speaking out of duty rather than conviction ( Pilato, 2018)?
Mutati the job of finance minister is not a decoration its a very serious assignment to the survival of zambia…please quit now you have failed…..to us you are like a useless fire engine that has no capacity to stop a fire….just quit…..