UPND President Hakainde Hichilema has challenged Finance Minister Bwalya Ng’andu to tell the nation where the US$515 million exceptional revenue will be sourced from to finance part of the 2020 national budget.
Mr Hichilema has urged the government not to borrow anymore unless it is refinancing under more amicable terms.
He has reiterated that some of the problems facing the nation are as a result of over borrowing and poor governance.
Mr Hichilema says blaming climate change over the challenges facing the nation is unrealistic adding that all these can be resolved if they stop Corruption and borrowing.
He says he will once in government ensure that Zambia’s debt is reduced to avoid plunging the country into a debt crisis.
Finance Minister Bwalya Ng’andu plans to obtain almost 10% of Zambia’s total income next year from undisclosed sources, raising concerns about the accuracy and sustainability of government spending plans for 2020.
The budget, which Dr Ng’andu presented in Parliament, contains 6.75 billion kwacha ($515 million) of “exceptional revenue” that could further stretch the country’s finances.
Yesterday, Bloomberg reported that Zambian Finance Minister Bwalya Ng’andu plans to obtain almost 10% of the total income next year from undisclosed sources, raising concerns about the accuracy and sustainability of government spending plans for 2020.
The budget, which Ng’andu presented to lawmakers on Sept. 27, contains 6.75 billion Kwacha ($515 million) of “Exceptional Revenue” that could further stretch the finances if it doesn’t materialize. Government debt has surged from 20% of gross domestic product a decade ago to a projected 91.6% this year, prompting the International Monetary Fund to warn that Zambia is at high risk of debt distress.
“There’s a process tagged to this and an announcement will be made as soon as process completion is attained,” a Finance Ministry spokesman said in response to questions about the source of the funds.
“It would be great if the government gave an indication of this exceptional revenue before the budget comes into effect in January to avoid unnecessary speculation,” Lusaka-based economist Chibamba Kanyama said in an emailed response to questions Wednesday. “I think all stakeholders want to ascertain the efficacy of that source so that we are more than guaranteed it will be realized.”