Reduce on borrowing and focus on budget deficit reduction -JCTR urges Government
THE Jesuit Centre of Theological Reflection (JCTR) has urged Government to reduce on borrowing and focus on a budget deficit reduction plan as the accumulation of Zambia’s public debt is alarming.
JCTR media and information officer, Tendai Posiana, said there was need for Government to reduce on borrowing and focus on a budget deficit reduction plan.
Mr Posiana said this would increase income levels and reduce interest’s rates on Government debt.
He said in a statement that the accumulation of the country’s public debt in such a short period of time was “very alarming” and that stringent measures ought to be implemented to arrest the trend.
Zambia has over the years contracted debt which has been used to sustain its development agenda such as construction of roads, hospitals and schools, but that the rate at which this debt was accumulating is alarming.
“The budget deficit has increased from 2.8 per cent in 2012 to 8.1 per cent in 2015 of Gross Domestic Product (GDP) .
“According to a ministerial statement issued by Minister of Finance, Felix Mutati, on debt levels on June 21, Zambia’s external debt in May increased to US $7.2 billion from US $6.9 billion in December, 2016. The domestic debt stock was K38.6 billion in May 2017 compared to K33 billion in December 2016.
“Government should reduce on borrowing and focus on a budget deficit reduction plan, which will increase income levels and reduce interest rates on Government debt,” she said.
According to the World Bank, Zambia’s fiscal credibility and public debt remains the most pressing challenge.
In an economic brief released on June 29, the World Bank stated that despite improved macroeconomic indicators such as lower inflation and the Kwacha’s stability in 2016, the country’s fiscal situation and public debt remain pressing challenges for economic growth.
JCTR media and information officer, Tendai Posiana, said there was need for Government to reduce on borrowing and focus on a budget deficit reduction plan.
Mr Posiana said this would increase income levels and reduce interest’s rates on Government debt.
He said in a statement that the accumulation of the country’s public debt in such a short period of time was “very alarming” and that stringent measures ought to be implemented to arrest the trend.
Zambia has over the years contracted debt which has been used to sustain its development agenda such as construction of roads, hospitals and schools, but that the rate at which this debt was accumulating is alarming.
“The budget deficit has increased from 2.8 per cent in 2012 to 8.1 per cent in 2015 of Gross Domestic Product (GDP) .
“According to a ministerial statement issued by Minister of Finance, Felix Mutati, on debt levels on June 21, Zambia’s external debt in May increased to US $7.2 billion from US $6.9 billion in December, 2016. The domestic debt stock was K38.6 billion in May 2017 compared to K33 billion in December 2016.
“Government should reduce on borrowing and focus on a budget deficit reduction plan, which will increase income levels and reduce interest rates on Government debt,” she said.
According to the World Bank, Zambia’s fiscal credibility and public debt remains the most pressing challenge.
In an economic brief released on June 29, the World Bank stated that despite improved macroeconomic indicators such as lower inflation and the Kwacha’s stability in 2016, the country’s fiscal situation and public debt remain pressing challenges for economic growth.