The Zambia Tax Platform says the speech delivered by Finance Minister Dr Bwalya Ng’andu does not offer any hope to ordinary Zambian citizens that things will get better any time soon as it reconfirmed fears many have had that things will continue deteriorating.
Zambia Tax Platform Chairperson Leah Mitaba said the Platform is encouraged that Government is fully aware of the factors behind the current challenges the economy is experiencing.
Ms Mitaba has also commend Government for the steps taken towards improving accountability by taking the Budgeting Act, reviewing the procurement Act because this is progressive.
She said it is however disappointing that Government does not seem to have solutions to address the various challenges the country is facing looking at the measures it plans to undertake.
Ms Mitaba said the ZTP we is saddened that public debt continues to rise saying this is worrying because debt threatens spending towards critical social sectors.
She has called on Government to be more transparent on the country’s debt situation saying Government has been silent on key information around debt, especially with regards to the value of pipeline debt- both domestic and external.
Ms Mitaba wondered why Government is announcing domestic arrears without including the VAT refunds.
“With regards to Government’s announced plans to re-scope debt, ZTP urges Government to provide clarity on the specific projects it intends to re-scope in an attempt to reduce project costs and undisbursed loan balances, even as they relate to underspends in key social sectors from the 2019 fiscal year”, she said.
Ms Mitaba said as the country continues to grapple with debt, the slow rate of dismantling domestic arrears, which is central to the 2020 national budget, has impacted negatively on the private sector leading to delayed wage payments and postponed investments ultimately reducing the private sector’s contribution to GDP growth as it has hit hard their cash flows.
She said this has made private sector investment to slow down.
Ms Mitaba said ZTP notes the effort Government has made to dismantle domestic arrears through the National Road Fund Agency which has settled a significant amount owed to local road contractors and consultants but wondered why the dismantling of domestic arrears seems more biased towards road construction and the sector in general neglecting other equally important sectors.
“In aspiring to be a middle-income nation by 2030, the observed economic growth rates provide evidence that Zambia will not archive its vision by 2030 if significant adjustments are not made. Government therefore needs to revise its investment strategy. Investment must be made on projects that are viable and guarantee measurable returns. Government must not only focus on collecting more revenues but also, on stimulating the economy”, she added.
She said the reduction in grants by Cooperating partners is another thing Government may need to pay close attention to, Government may need to undertake a serious introspection to understand the reasons behind low disbursements on grants from cooperating partners.
Ms Mitaba said this is critical as most of these resources are meant to support social sectors.
She said that the speech delivered by the Minister therefore does not offer much hope for the Zambian people, the speech is basically a reminder that Zambians should brace themselves for tough days ahead.
Ms Mitaba said there is great need for government to call for a process that can lead to tangible solutions to the problems this country is facing.
She sounds contradictory, in one breath she commends in the other she condemns. We’re safe in Bwalya Ng’andu’s hands and not that jemasoni woman. He’s trying under very difficult circumstances. Our economy is too small to support all these projects that have been done in 9 years of PF, so what do you expect? The Minister needs our support not lamentations
Ever since PF took over government all they have been doing is creating or building wealth selfishly for themselves. Priorities have never been set right in the PF government despite meaning well in the beginning. Lack of accountability and mismanagement of resources and debt has brought us where we are today. Everything is in “all things fall apart mode” in Zambia if measures to correct the issues that led in the mess in the first place are not implemented we will keep digging the problem hole even deeper.
The finance minister has to be commended and his speech was very realistic and truthful. Anyway it’s hard to get the real message from the article.
Problem in Zambia is these same suffering faces you have in the photo above are hugely part of the problem.
In Zambia the most poor & deprived citizens are the ones most likely to vote for P.F, just look at Chilubi.
These same people’s parents will abuse, even KILL any opposition person trying to open their eyes & show them where it’s all going wrong & how the nation’s coffers are being robbed blind by their beloved P.F.
After election, all the plunderers withdraw from the ground, & left behind are these poor starving souls, “enjoying” malnutrition, chitenge -nsalu with J0n@’s drunken head, & half a bag of donor supplied mealie meal wrongly diverted to campaigns. Meantime leaders like J0n4, B0wm@n, Mwila, Chimpyongo live in opulence with EVER EXPANDING BELLIES.
Then you have…
Cont;
then you have a small fraction of educated comfortable dishonest people aka (P0LOticians) like G0dfrey Mw@lya Bw@mba & M!les S@mpa, who worship the belly NOT the truth. These guys will like a moth to light, follow where the money is, & will even sit next to the Devil’s throne, “as long as they are eating”
I HONESTLY DON’T PUT IT PAST G.B.M, OR THE LUSAKA MAYOR TO DEFECT AGAIN, WEEKS BEFORE THE 2021 POLLING DAY, IF THEY SENSE P.F LOSING POWER, WATCH THIS SPACE!
I AM NOT AN ECONOMIST BUT ONLY AN ENGINEER.
COMMON SENSE TELLS ME THE ECONOMIC MODEL IS SKEWED TOWARDS TOO MANY UNNECESSARY IMPORTS AND FOREIGN LABOUR AT THE EXPENSE OF LOCAL TALENT.
THERE ARE TOO MANY SHOPPING MALLS OBVIOUSLY CLAMOURING FOR THE LITTLE FOREX AND THEREFORE DRIVING THE KWACHA DOWN: FOR EVERY SHOPPING MALL BUILT THE GOVERNMENT SHOULD DEMAND TWO FACTORIES BUILT BY THE VERY INVESTORS TO NOT ONLY CUT DOWN ON IMPORTS BUT CREATE EMPLOYMENT.
CHINA IS PARTLY WHAT IT IS TODAY BECAUSE ONE OF THE CONDITIONS FOR FOREIGN INVESTORS TO OPEN MANUFACTURING FACILITIES IN THEIR COUNTRY WAS THAT THERE SHOULD BE TECHNONOLOGICAL TRANSFER FROM FOR EXAMPLE AMERICA TO THE CHINESE ECONOMY.
ALAS IN ZAMBIA WE STILL DON’T EVEN BUILD OUR NUMEROUS ROADS!!
WAKE UP ZAMBIA!
WE NEED AN INDABA ON…
WE NEED AN INDABA ON “REMODELLING ZAMBIA’S ECONOMY AND NO MORE INDABA ON POLITICS.