Opposition leader Hakainde Hichilema has charged that the ruling PF government is useless when it comes to medium term policy and planning.
Mr. Hichilema said this is the reason the PF is sinking the country with debt.
In a budget day statement, Mr Hichilema demanded that the 2019 budget speech must make a clear, time-bound policy statement on the future of engagement with the IMF.
“If we have failed to auto-correct and are so off-track that the IMF won’t even talk to us anymore, let’s stop lying to the Zambian people. Let PF come clean in the Budget that IMF is off the cards,” Mr Hichilema demanded.
Mr Hichilema said the PF government must give a clear roadmap on how they will either address the fiscal concerns raised by IMF or admit they have failed to manage as the country prepares for a roller coaster ride towards the unenviable Highly Indebted Poor Country (HIPC) status again.
The UPND leader also demanded that Finance Minister announces the mechanism for contracting and tracking of debt from China.
“China and Zambia should demonstrate and put on record disciplines that ensure to stem Zambia’s accrual of debt that we cannot pay back except through asset takeovers and natural resource “robbery.” If we think the Chinese debt is a joke read about what happened in Sri Lanka,” Mr Hichilema wrote.
Below is the full statement from Mr Hichilema
PRESS STATEMENT
Thursday 27th September 2018
Mwanakatwe must address fiscal discipline and debt in 2019 budget
As the Minister of Finance moves to present the 2019 budget, we expect that the PF will address pertinent economic issues that are affecting the country. The PF Government’s poor economic management has been the major cause of the economic stress the country is facing. The PF Government preaches economic prudence but practices the opposite. They are far from managing the economy prudently. And here is why.
Medium Term Expenditure Framework (MTEF)
In September, 2017, the PF produced the MTEF 2018-2020 with the indicative budget for 2018 of K65.4 billion as part of fiscal consolidation. At the end of the same month, the national budget was presented with an estimate of K71.7 bn. Where did the fiscal consolidation go? Fiscal consolidation simply means that Government will not borrow heavily to finance the consumption.
In a very similar way, the MTEF 2018-2020 shows that the 2019 budget should be around K69.4 billion, but the MTEF 2019-2021 now gives the 2019 budget to be around K84.6 billion. Fiscal consolidation is a myth and MTEF-based budget predictability and credibility are but a fleeting illusion.
If you get into the breakdown of the budget allocations between MTEF 2018-2020 and MTEF 2019-2021, the situation is even worse in terms of misalignments. e.g., General Public Services has increased from 31.9% of budget in the MTEF 2018-2020 to 34.5% in the MTEF 2019-2021 while Economic Affairs (a key function of building productive capacity in the economy) has dropped from 25.5% of budget in the MTEF 2018-2020 to 22.1% in the MTEF 2019-2021.
Similarly Education has fallen from 17.2% of budget in the MTEF 2018-2020 to 16.2% in the MTEF 2019-2021. This is simply poor decision making! While they are significantly increasing the nominal size of the budget, they are at the same time allocating smaller shares to investments in productive sectors (agriculture, tourism, mining etc) and social sectors (health, education, water and sanitation). Where will the growth and taxes to reduce the debt come from with this type of budgeting? There is no point in even publishing such inconsistent MTEFs, it’s a waste of time.
Zambia Plus
The implementation of Zambia Plus is set to be completed at the end of 2019 (the last year of Zambia Plus), but the Minister cannot even provide headline achievements (let alone a comprehensive report) on the implementation of Zambia Plus in 2017 and half-year 2018. And yet here we go again with a 2019 budget making the same promise about fiscal consolidation, fiscal discipline, debt management and all that noise. The PF is useless at medium term policy and planning, this is the reason they are sinking the country with debt.
Legislative Reform
Since the 2016 Budget Address, the Ministry of Finance has been promising to finalize and submit mine to parliament key legislation: Budgeting and Planning Bill; Public Procurement Act; Loans and Guarantees Act. To date these have not been tabled before the Parliament but legislation that supports their spending appetite are rushed through (e.g., 30 Ngwee on Internet calls, Borehole levy, National Health Insurance, Skills Development Levy, etc.) In fact, did you know that the collections on Skills Development Levy started without an operational mechanism so that when funds were collected they were misappropriated by the Ministry of Education who bought vehicles and paid out allowances? This information is in the 2016 Auditor General’s report which was presented to Parliament in November last year. This is but a tip of the iceberg as far as reckless expenditure during the PF is concerned.
IMF
We demand that the 2019 budget speech must make a clear, time-bound policy statement on the future of engagement with the IMF. If we have failed to auto-correct and are so off-track that the IMF won’t even talk to us anymore, let’s stop lying to the Zambian people. Let PF come clean in the Budget that IMF is off the cards! In addition the PF must give us a clear roadmap on how they will either address the fiscal concerns raised by IMF or let us know that they have failed to manage as we prepare for a roller coaster ride towards the unenviable Highly Indebted Poor Country (HIPC) status again.
Debt
The Minister must issue a clear budgetary policy statement on why her ministry failed to deliver detailed quarterly debt status reports that indicate the broad structure of debt (how much is concessional and how much is commercial, by creditor type, bilateral, country and multilateral (including International Financial Institutions); what are the interest terms and the conditions (including collateralization of assets), by creditor type. This is something we must know so that when arbitrary taxes and levies are introduced, we are in a better position to anticipate them.
China Debt
We demand that the Minister announces the mechanism for contracting and tracking of debt from China; China and Zambia should demonstrate and put on record disciplines that ensure to stem Zambia’s accrual of debt that we cannot pay back except through asset takeovers and natural resource “robbery.” If we think the Chinese debt is a joke read about what happened in Sri Lanka.
Let’s Calculate
We are called calculator boys; well we need to calculate to know where we are going and how we can get out of debt. The problem with PF is they do not calculate. In general this PF government must just cut on unnecessary expenditure and increase expenditure on the productive sector. What do we mean, here is an example, the Government is allocating expenditure for international travel (consumption). Let us say the delegation is 10 people, travelling to the USA, their tickets will cost US$17,000 or K170, 000 and their subsistence will be US$15,000 or K150, 000 (calculated at $300 per day for 5 days for 10 people). This gives us a total of US$32,000 or K320, 000. This is just travel. If the Government is serious and they instead send only 5 people to this conference and invest the balance K160, 000, with three women using the women empowerment fund, and those women start growing tomato. This money could easily finance 3 hectares of tomato with an estimated revenue of K1.2 million kwacha from where the Government would get K36, 000 in revenue taxes and a possible K192, 000 on VAT.
This investment would give Government K228, 000 in revenue, add the K150,000 advanced to the women as a revolving fund, that is K378,000 and they could refinance double the number of women. This is not theory, this is what this Government would do if they reduced expenditure on travelling for conferences and increase investment in agriculture. And then someone calls us CALCULATOR boys!
As UPND, when in power, we will address this circus which is literally sending the economy into a downward spiral; a spiral stemming from poor economic management as we have demonstrated in the paragraph above.
Hakainde Hichilema
UPND President
Ba HH, too much jargon. Just say it in simple language please!!
Show me an educated PF cadre or Leader, This is beyond PF, a country where corruption has become acceptable. PF is like a cult, no matter how bad things get PF supporters will not leave, EL is like their Lanshina. Ask any PF supporter about the economy or anything else, The only answer you will get is HH will never rule Zambia, Who thinks like this ????
@1 Pompi, this is NOT jargon, TAKE TIME TO READ, DIGEST or ASK THOSE WHO UNDERSTAND TO EXPLAIN WHAT HH HAS PUT UP HERE!! While I DON”T AGREE WITH EVERYTHING HE HAS SAID, HE HAS TOUCHED ON CRITICAL ISSUES WE NEED TO ADDRESS, IF WE HAVE IMPROVE THE MANAGEMENT OF OUR COUNTRY!!
This statement from HH is very well articulated, even though LT have decided to twist by the heading. HH is a man that understands economics and PF better take a few lessons from this very well thought out article from HH
Here we go again. HH let PF rejoice abit please.
Ba Edgar is still in New York celebrating, everybody left. Ba Edgar just received an AWARD for industrializing some countries at UN, according to PF. What was interesting was that the presenter is a Zambian working AU or something.
Here is Hakainde he has posted an article ….those who are calling him out in every article on LT this is your turn to shine and challenge his points.
Free advise to Mr. HH – Portray a positive outlook. You may get votes. You perpetual Doomsday Nay Saying is a put off. Remove the dark Aura around you. You have no light, bye devil
Don’t attack him from the personal perspective, attack him based on the points he is raising and the suggestion he provided.
BTW, if you noticed, he is being positive and doesn’t criticize you for the China Debts, but offering you advise to strengthen you controlling and contracting mechanism.
Only a hyena will find the tribal peach in above and its, unfortunately, we can not change that.
The most useress H-opposition leader to have come out of the caves in Zambia.
HH and his UPND Tribal H-organisation is actually the one which is useress. See its supporters on this site. It tells a lot about this tribal gathering.
SHORT, MEDIUM AND LONG TERM PLANNING DOES NOT ONLY APPLY TO POLICY. IT EXTENDS TO AND EMANATES FROM THE RUNNING OF ANY ORGANISATION OR BUSINESS.
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I guess the upndead has been planning well. Maybe they have been winning elections going by double h sentiments in the article. Sinkamba’s contributions are more meaningful. How ironic.
Make many demands Adolf but doesn’t mean they will be met. Besides you are all the same knowledgeable when outside GRZ but once in awe. UpnD is useless at political planning. We demand an immediate convention to legitimatize positions. We demand you explain what you achieved by instructing MPs to boycott national events only for them to return this year as we had advised. We demand to know what you achieved by bringing the great bag of maize to be veep when we told you NO! We demand to know what Katoloshi, Guy and the buggage you brought on board got you…2021 YOU will lose again and oh please tell what you have gained in trying to win before judges you insult an election you lost.
@changeweneed UPND – “UpnD is useless at political planning.” Thumbs Up! Well put. I LOVE YOUR POST VERY MUCH. The problem is HH si anvela!
CHILDISH, Did you know that when you die your (our) money will also die in Panama? Can you tell us why you took “your” (our) money to Panama and not put it in ZANACO, Finance Bank or INDO ZAMBIA Bank?
Trump allows criticism from all quarters….. Lungu charges opponents with treason….. Lungu is scared of a poor man in Kalikiliki when he speaks against him. Lungu is scared of himself and fears everyone….. He lacks self esteem……
He uses charlatan like Antonio Mwanza to fight for him
They tried to run the president off the road, are you even serious right now? This man has contempt of court and has not been arrested. President Lungu is actually calm. UPND needs to focus on lowering perks for MPs and ministers. Also stop walking out of the national assembly.
Try to to be CHILDISH around Trump’s motorcade and you will be history! It is luck it is breathing because it did the despicable in Zambia. Supporters of CHILDISH are childish, most of the time.
Sharon, thats the worst comparison I have ever ready, you can’t compare Trump and Chagwa. It’s an insult. The other week he fires Kabanshi over missing money in another breath he says the money is still intact. Brain implant must be cared out.
Trump allows criticism … Lungu charges his enemies with treason …. Lack of self esteem is prevalent with African leaders…. Even ZICTA is working for Lungu… shame on ZICTA….. Cowards and puppets we have
Try to to be CHILDISH around Trump’s motorcade and you will be history! It is luck it is breathing because it did the despicable in Zambia. Supporters of CHILDISH are childish, most of the time.
Very good article ,unfortunately LEARNED PF CADRES will just rush to attack him.
It is a very good article in PANAMA according to Paradise Papers. LEARNED UPND CADRES rushed without HaUnderstanding the HaUnderlying problem of CHILDISH. Because they support their local team blindly.
There is nothing that will come out of this budget presentation except increment in taxes.The only language this government knows is that of squeezing money from the poor Zambian worker.We should not expect the budget to address real issues that the nation is facing.A Zambian worker will never receive any relief in terms of tax deductions.
Most of the people who are in informal sector do not feel the pain of paying tax.It is only those who are in formal sector who subsidize for the majority.There is no plan,whatsoever,to bring the blotted informal sector in the tax net.The government squeezes a stone thinking water will come out.And taxes collected from formal sector is corruptly spent by greedy politicians.
The only language this UPND god HaUnderstands and communicates through is being belligerent to the man who whopped his behind.
HH please bring back your money in offshore accounts and put it in our local banks then start lecturing us
HE WANTS TO BRING BACK IMF FUNDS, BUT THEY ARE NOW BROKE BECAUSE THEY GAVE ARGENTINA $57bn.
Please HAZALUZA HAGAIN can you explain to the nation what Offshore Tax Haven Account means. After that, lecture us, with the aid of a labeled diagram while Charmaine and Mutinta are standing on either side of you. The boys and the nation will pay attention to you, maybe.
This is very straight forward and correct budget analysis.
But its too complicated for the average dull PF cadre.
This is a straightforward case that if you bring the money you store from Panama, Zambia will be richer! What part of TAX HAVEN PANAMA don’t you HaUnderstand?
HH has of late he has been trying to give advice jealous down. If only he was not having stains of privatisation blood on his hands, I was going to say lets try this Tonga person in 2021, but …………………..no………..no…. please!!! no problem with UPND policies but the HH
“Only A TONGA can be president of UPND!” Larry Mweetwa. “And Zambia for us to support any President.”
“ONLY A TONGA MUST SUCCEED MAZOKA” says Sejani. Mr. I know it all HH your statement and assessment is lopsided. When you are evaluating an entity you don’t only highlight areas where it is not performing well but also you commend the entity where it is performing well. Sadly, as expected of you, you have only chosen the areas where you yourself think the PF governance is lacking some momentum. The other thing is that you have never worked in government and so you lack public governance experience, what you still posses is purely economic theories that you learnt some years ago which may not even be relevant this time. Mr. privatization you must know that theory and practice do not correlate at all. Don’t think you are the most intelligent person in the country
Correctly observed
Thank @ #10 Alexander for reminding me of that name! I always forget! HH must correct the information if it was wrong because that is what my mind believes and remembers always when I see him and when his Children like Gay Jay and HaSpakata write.
YES HH, you have GOOD POINTS though I DON’T AGREE WITH EVERYTHING you have said, especially on the IMF. WHY SHOULD WE STAY FIXATED ON THE ISSUE OF THE IMF WHICH HAS NOT WORKED FOR ALMOST 3 YEARS?? Then as @ 2 Janjaweed, has pointed out, WHY DID YOU HAVE TO WAIT ALL THIS TIME,boycotting parliament, INSTEAD OF COMMANDING YOUR MPs TO TASK GOVT TO BRING THESE IMPORTANT PIECES OF LEGISLATION TO PARLIAMENT TO HELP SAVE OUR COUNTRY!! Now, you kept away from all these when there was time to put them across and now you alone want to sound intelligent instead of pushing this agenda through MPs, the elected representatives of the people. YES,HAVE EVEN FAILED TO TALK ABOUT HOW WE NEED TO PROCEED WITH GAINING BENEFITS FROM THE MINES BCOZ THEY ARE YOUR PAY MASTERS!!YOU MAY HAVE SOME GOOD IDEAS, BUT…
..continued from 10..YOU MAY HAVE SOME GOOD IDEAS, BUT YOU ARE NEITHER A GOOD LEADER NOR GOOD POLITICIAN!! We are now looking for people with new ideas, NOT those who are just good at criticism!!
Just bring back stolen privatization money!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ba Sankwa give us solutions and not all that crap and cheap rantings always associated with you. Problem is that you always think you are the alpha and omega of this country. Faggot
Lately Dear HH been coming out genuinely concerned about the wellness of this our Zambia.
Unlike his past statements that normally exuded venom and hate, the current ones seem to come from the depth of a patriot’s heart.
I loathe the fact that one soul I dislike naturally is beginning to make more sense than my team. We either take heed or we soon sink. It won’t take him to torpedo our boat but the arrows of popular discontentment will, and all he’ll do is ride the wave of change.
1.. “Opposition leader Hakainde Hichilema has charged that the ruling PF government is useless when it comes to medium term policy and planning.”
COMMENT: And he , Tribal Hacks, is useless as a political leader.
2. “Mr Hichilema demanded that the 2019 budget speech must make a clear, time-bound policy statement on the future of engagement with the IMF.”
COMMENT: But Trib.al Hacks does not think, nangu panono, man the speech was prepared last week. You should have passed that demand before last week, walikwisa?
HATRIBES will never be satisfied with H-anything! It will keep on changing the goal posts.
…And as for you ba sir, you are rubbish at long-term strategy. How do you expect to be taken seriously when all you do is speak like a parallel government? We can only have one president and if you are serious about leading this country then you need to wait your turn. As for now, your job as the opposition is to offer checks and balances to help shape the nation. We’ve had enough of the verbal diarrhea.
By using strong words like “Useless,” you end up sounding bitter. What you say matters less than how you say it! You may have good points but immediately you sound doomy gloomy, you put off a lot of people! Portray a brighter outlook on how we can get out of the mess. Every leader must choose their words carefully!
UPND is useless at medium term policy and planning-ECL
I don’t expect anything else from this bitter man. If he was medicine he would heal any patient. He spoils good points by bitterness. It will be worse come 2021.
IN 2021, he will be sent into retirement! Then the drama will start because they will not accept GBM as their leader because GBM, they will realise is a “Thief!” (UPND IS FOR TONGAS according to Larry Mweetwa). Right now they don’t think he is a “Thief” because they want votes! Dr. C. Banda will be laughing!
This is why he (HH) is so bitter because he calculates how much travel allowances he Would have earned through travels if he were a head of state. We are told by his former councilors that he has no idea of even running his unproductive party(UPND). All he does is shout at Govt of the day and forget that he needs the grassroots to get to state house.
He also wants to sell Zambia HAGAIN.
Analysing MTEF 2018 -2020 7 comparing /contrasting with MTEF 2019-2021 is great stuff for a graduate economist to report to his boss so that they fine tune. It is a budget and even uses terms such as ‘ indicative”.
The fact that there is overlap between the two ( 2019) , shows to me – an Engineer- that this is more like a curve plotting the log of results, using past results and forecasts.
Actually, this is good information for the involved technocrats ( who likely gave you this synopsis!)
But reduce on your accompanying cynicism boss- You sound like Boris going after Theresa May!
AHHH STPID ZAMBIANS I’M TALKING ABOUT POLICIES WHICH I MYSELF DO NOT UNDERSTAND KIKIKI
infact i’m just fooling around I know I can’t get to state house because if I go there bane I will introduce ox-carts as public transport and break flush toilets and bury pitlaterines so that people defacate in the bush kikikikikiki
So HH is not allowed to critique the PF regime simply bcoz he’s opposition leader of many years? I guess you all never held debates as students?
You missed it! Because he is a leader of a TRIBAL H-ORGANISATION called UPND.
Even though this man may be something of a Western puppet at times, I have to agree with him. Timachita manyazi lelo
Zambia needs a better opposition.
Level of literacy still very low among PF contributors!! Please look at what HH has written then contribute or offer alternatives not just as per their masters voice. Let us contribute professionally if we can’t we just keep quiet…HH Kunka mulilo bana balye nshima
#24 Richard, you mean ba Tri.bal Hacks? Are you serious expecting Zambians to listen to him?
One may have the knowledge and even pass with distinction,but fail to put what they have learnt into practice.Can HH put all his plans into practice?I for one seriously doubt his implementation skills.He has failed miserably at party level only God knows what he can do at national level.