Ministry of Finance and National Planning says it is confident that the legal reforms in Public Debt Management once approved by Parliament will help in the economic recovery in the country.
Ministry of Finance and National Planning Permanent Secretary Mukuli Chikuba explains that one of the major economic reforms is the Public Debt Management Bill which has been taken to Parliament for consideration.
Speaking during a media engagement workshop on Economic management at Sandy’s Creation in Lusaka yesterday, Mr. Chikuba noted that the said Bill once enacted will provide a provision for Parliament to approve every loan acquired for the public sector.
“If you are the central government, parastatal or council and quasi-government, they will be no borrowing externally without the approval of Parliament.
“ The legislation also mandates the ministry of finance to publish very specific information on debt and also present it to Parliament,” explained Mr. Chikuba.
The Bill which has reached its first reading in the First Session of the 13 th Assembly seeks to provide for the raising of loans and grants; the issuing of guarantees; and the approval of loans by the National Assembly.
Other issues the Bill will tackle includes the issuing of loans by, or on behalf of the Government; the establishment of sinking funds; the establishment of the Debt Management Office and provide for its functions; the repeal of the Loans and Guarantees (Authorisation) Act, 1969, and the General Loan and Stock Act, 1931; and matters connected, or incidental to, the foregoing.
Meanwhile, Ministry of Finance and National Planning Assistant Director-Budget Officer Percy Musonda in his presentation indicated that the treasury will continue to implement government programs in line with the 2022 national budget.
Mr.Musonda said that the spending is expected to under the farmer input support program to support the input the 2022/2023 farming season which has been caused by the surging price of fertilizer.
“ Priority will also be given to social spending programmes including drugs and medical supplies and dismantling of arrears in order to unlock liquidity in the economy.
Further government remains hopeful that the International Monetary Fund (IMF) programme will be approved by the board,” he said.
Hh is selling this country to the lowest bidder for kickbacks. Privatisation
This is too complicated for your understanding
Says the lusakatimes self proclaimed engineer. Haha fuseke
Actually these reforms a long over due ….you cannot have the left hand not knowing what the right hand is doing…even the disastrous EURO Bond would not have seen the light of day if these reforms were in place….the ‘hidden’ debt from the east would not be on grz books to mention but a few
Okay on the paratsatal no borrowing without parliament approval I completely disagree. How is a parastal expected to compete with the private sector if they have to take external borrowing to parliament as opposed to the board. You could be waiting years before a critical business decisions are implemented. I understand the rationale as they do not want a repeat of Zesco reckless borrowings that mortgaged the country through Soveriegn Gurantees but that was more a failure of corporate governance as opposed to a failure of law. The board failed to safeguard the welfare of the shareholders (government through IDC) by effectively supervising management. You solve this by effective corporate governance; quick solution is to scale down GRZ shareholding to minority in all parastals. It has…