Haabazoka Applauds UPND Fiscal Management, Gives 9.2 Out of 10

Haabazoka Applauds UPND Fiscal Management, Gives 9.2 Out of 10

Lusaka, Tuesday — Economist Dr Lubinda Haabazoka has rated the government 9.2 out of 10 for maintaining fiscal discipline and re-establishing budgetary credibility amid global economic pressures. He said Zambia’s recent macroeconomic stability and re-engagement with international creditors demonstrate a clear turnaround from the period of unsustainable debt accumulation that preceded the current administration.

Dr Haabazoka commended the Ministry of Finance and National Planning for maintaining strict spending controls and aligning public expenditure to revenue performance. He said the implementation of the International Monetary Fund (IMF) programme, alongside the domestic debt-restructuring framework, has helped restore investor confidence and strengthen the kwacha.

“Fiscal discipline is the backbone of economic growth,” Dr Haabazoka said. “When you see inflation stabilising, the exchange rate holding within manageable bands, and spending remaining within budget ceilings, you are looking at serious policy commitment.”

He explained that the 9.2 rating was derived from indicators covering public debt management, deficit control, and expenditure efficiency. According to him, government has met most of the targets under the Economic Stabilisation Programme and has demonstrated a stronger grip on fiscal risks than many countries in the region.

Dr Haabazoka, a former president of the Economics Association of Zambia (EAZ), said the credit restructuring agreement secured with both official and private creditors was a turning point that allowed resources to be redirected toward productive investment rather than debt servicing.

He highlighted the expansion of the Constituency Development Fund (CDF) as one example of disciplined fiscal management translating into tangible community impact. “Government has managed to increase CDF allocations without borrowing recklessly. That shows prioritisation and prudence,” he said.

The economist also noted improvements in tax collection and transparency, pointing to the Zambia Revenue Authority’s digital compliance system and public expenditure monitoring tools that have tightened controls over leakages.

Dr Haabazoka said the UPND administration’s continued restraint on unplanned spending and adherence to medium-term budget targets should be sustained to anchor long-term growth. He urged government to guard against electoral-cycle pressures that often lead to budget overruns and inflation spikes in African economies.

He credited President Hakainde Hichilema’s leadership for the improvement in fiscal governance standards, saying the President’s consistent message on prudence and accountability had filtered through all government spending units. “From the top, there is a clear tone of responsibility,” he remarked. “Budget discipline has become a culture rather than an instruction.”

Dr Haabazoka observed that the economy was now on a path to recovery despite challenges such as the drought impact and slow industrial growth. He cautioned that sustained reform implementation and strong export performance would be key to maintaining the momentum.

The Finance Ministry recently announced that the fiscal deficit for 2025 is projected to remain below 5 percent of GDP, consistent with IMF-supported targets. Inflation has been kept within single digits, and the kwacha has stabilised against major currencies.

Business and academic figures have echoed Haabazoka’s assessment, citing a noticeable reduction in extra-budgetary expenditure and a stronger link between policy planning and execution. However, some stakeholders have urged continued attention to domestic debt arrears and liquidity constraints faced by local suppliers.

Dr Haabazoka said the most important achievement was that Zambia had restored its fiscal reputation globally. “The country can now negotiate from a position of credibility. If we stay the course, our sovereign ratings will improve, and investor confidence will continue to rise,” he said.

He called for continued public education on budget literacy so citizens can understand how discipline in public finance directly benefits service delivery and economic stability. “Fiscal discipline is not just about numbers; it is about trust,” he concluded.