President Rupiah Banda today spelled out stringent economic measures to help cut down on government expenditure, following the negative effects of the prevailing global economic crisis.
Addressing his second press conference at State House today, President Banda said it is necessary that government responds to the effects of the global economic meltdown.
President Banda has consequently banned the purchase of expensive luxury vehicles as utility and duty vehicles and directed government officials entitled to personal-to-holder vehicles should begin to use them for intended purposes instead of packing them at home.
He said government delegations for trips abroad should be reduced and that only absolutely necessary trips should be undertaken.
“The number of workshops should be drastically reduced and by all means possible held within government ministries’ board rooms to cut down on costs,” he said.
President Banda explained that these measures are not meant to punish government officials, bu are a way of cutting down on government expenditure.
He has also directed that the Ministry of Finance and National Planning, the Secretary to the Cabinet, and the Ministry of Works and Supply to put in place measures aimed at cutting down on public expenditure.
He noted that government has been facing a number of challenges in implementing the budget, which he attributed partly to the delays and in some cases withdrawals of financial assistance to government by Zambia’s cooperating partners.
The President further said domestic revenue collection has fallen below the projected levels, a situation he said has impacted negatively on the implementation of government’s priority programmes.
“Pressure to pay wages above the budgeted amounts, payments for the purchase and import of maize to ensure adequate supplies of maize meal, are among some of the challenges being faced,” he said.
Mr. Banda further said government will re-align resource allocation to infrastructure development in the energy, agriculture and tourism sectors as one way of responding to the effects of the global economic crisis.
He said government would intensify efforts to attract foreign and domestic investment which he said has significantly reduced globally.
President Banda called for the consolidation of the macro-economic stability gains through minimising exchange rate volatility and moderating inflation, adding that this calls for fiscal and monetary discipline at all levels.
“The challenges require all of us to sacrifice. I hope all of us understand,” he stressed.
He also said government is considering re-aligning the budget cycle to synchronise it with the calendar year in order to speed up the implementation of the development programmes.
”This means that government’s financial year will be starting in January of each year,” he said.
Meanwhile, Mr. Banda said government is addressing the needs of the key sectors of development, by sustaining the mining companies’ operations and keeping job losses to a minimum.
He cited the taking over of Luanshya Copper Mine by the new owners as one of the landmark successes that government has scored to keep the country’s economy afloat amidst the global economic meltdown.
“However, I am shocked that the so-called opposition leaders have been pushing for the blocking of the transaction through a court process,” he said.
Mr. Banda’s second press conference since he came to power in November last year was attended by members of the diplomatic corps accredited to Zambia, cabinet ministers, and senior members of the ruling Movement for Multiparty Democracy (MMD), among others.
ZANIS
