Thursday, March 28, 2024

Zambia’s revised 4 % GDP growth remains feasible-Finance Minister

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Minister of Finance MARGARET MWANAKATWE
Minister of Finance MARGARET MWANAKATWE

Minister of Finance Margaret Mwanakatwe says she remains confident that the annual projection of the revised growth of the Gross Domestic Product (GDP)of above 4 percent remains feasible as real sector indicators show a rise in economic activity in the first half of 2018.

Mrs. Mwanakatwe said over the medium term, the expectation is that growth will be in the range of 4-5 percent driven by sectors such as mining, tourism and construction supported by stable power supply and stable global development.

ZANIS reports that the Minister said this during a press briefing at her office in Lusaka today.

She stated that the downside risks to the growth projections include volatility in copper prices, high lending rates and adverse weather conditions.

With regards to fiscal performance, Mrs. Mwanakatwe said it remains satisfactorily although adverse liquidity conditions has made financing audit difficult.

Mrs. Mwanakatwe said on revenue outturn, preliminary estimates for revenues and grants in the first half of 2018 amounted to K25.07 and were broadly in line with the period projections.

She noted that domestic revenues were above target by 3.3 percent supported by positive performance of Value Added Tax (VAT) collections.

Mrs. Mwanakatwe added that, lower than large performance was recorded in some revenue categories such as the income tax, customs and excise duties, export duties and non-tax revenues and grants.

She explained that in an effort to address some of the challenges associated with the low revenue collection in some tax types, government is undertaking measures to use electronic solutions in revenue collection.

Mrs. Mwanakatwe said other measures include increased pace of implementing the land titling programme and the recent change in the taxation for fuel importers to enhance excise duty collection.

She revealed that total expenditure for the first half of 2018 amounted to K39.6 billion against the budgeted K34.19 billion.

Mrs. Mwanakatwe noted that the major components which were above target were interest payments by 43.2 percent and capital expenditure by 65 percent.

She explained that going forward, expenditure control will be at the core to achieve fiscal adjustment given the tight financing conditions and higher deficit.

Mrs. Mwanakatwe further added that, measures on enhancing payroll management, expenditure cuts in areas such as use of goods and services, progressing on procurement reforms and debt reprioritization will be the focus for the rest of the year.

She said this is meant to create a lower spending base as the country gets into the 2019 financial year.

18 COMMENTS

  1. A sober prognosis which should be supported by every patriotic citizen. Now watch the pessimissts try to discredit the ministry and deny the positive outlook.

    We know them. They have a Problem for every solution.

    • It fake baba the problem with PF supporters is you always put the party above the country your level of caderisn is degenerating this country to Zombies u wish to nod to everything you utter from your filthy lying mouthed even when people who have an ounce of a heart for this country positively criticize. Just concerning the debt alarm bells were continuously rang before it even escalated …but no the PF wouldn’t listen we kept hearing how it was within 24% of GDP and how critiques were jealous of PF works…now first quarter Zambia barely registered 2% growth …minister is already asking for supplementary budget with another quarter to go and this drunk of a minister is now saying she will grow the econ above 4%???? She is even oblivious to the trade wars that will certainly impact…

    • Nothing in her report is in their control in so far as GDP growth is concerned yet you want us to be optimistic ???? You do realise there is very little positivity in the other things she is talking about except delusional austerity measures. So this crystal ball she is looking into to make such projections can only be a bottle of whisky or Cognac…. since these people are living lavishly while we wallow in their corruption and poor decisions. Credit to her she is more cognisant of the corruption and musmanagement in government and braver to talk about it than “Mutiti” who kept sweet talking to the next pay check while driving us into deeper sh1t

    • Economic growth in real terms in the first quarter of this year went down to 2.6%. We speak from facts and not these written speeches that only end up on paper. We are pessimists with facts not optimists based on empty rhetoric. Someone with a brain would have already realised two years into PF taking power that they had no clue regarding the economy. Ten years later, they are still singing praises even when all economic indicators are in reverse and we have a debt crisis. Are you people normal like seriously?

  2. You will never please fuus madam just keep rolling! It is our Zambia, never mind them. Run away, Animo Farm tribal organization is on its way! Run!

  3. Whatever happened to those 5 ministers that were sent to China by the lazy one in State House….really laughable….Maggie you are a drunk the only thing you are confident about is drinking full bottles of whiskey and wines.

    • Lazy bum insolent tribal hooligan and bully son of a polygamist tribal father with a laughter disease is here like I had prophesied. UPND is a terrorist tribal group led by an UNELECTABLE tribalist HH.

  4. With lungu Zambia has a debt of $17 billion, having spent on infrastructure , GDP projections of 4%…….with RB we had a debt of $2 billion and had GDP in the 6.5 region ?

    I don’t understand, me thinks Zambia should be doing much better now seeing what we have spent ??

  5. I miss cleaning toilets at a Namwala Farm. Ever since I left there has been a lot of cow dung there and MAD COW DISEASE has broken out!

  6. …’seen a rise in economic activity”” WHAT RUBBISH !!! You need to get out of your office and take a look at what is happening in the country – everyone is struggling to make ends meet !!!!!!!!!!!!!!! PEOPLE ARE SUFFERING AND YOU SAY THINGS ARE GETTING BETTER – — PLEASE STOP INSULTING THE PEOPLE OF ZAMBIA WE ARE NOT AS STUPID AS YOU THINK WE ARE !

  7. What is growing the economy? Borrowing? Unemployment is everyday growing, everything is being done on borrowed money, malls are selling foreign goods, even mango. So where is this 4% GDP coming from? Are they just looking at the mines only harvest as GDP? Please!

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