Minister of Finance Margaret Mwanakatwe confirmed that her ministry has advanced and that its on her neck planning the rebasing of the country’s Gross Domestic Product (GDP), an exercise last conducted about 10 years ago.
The minister had last year during the budget speech announced that Government will undertake an exercise to rebase the country’s GDP this year 2019, an exercise last conducted in 2012.
Mwanakatwe stated that given what is happening with the country’s economy and what has happened in the last few years, the country should be able to see the improvement and growth in the economy once the exercise of rebasing of GDP is completed.
The minister said this when she responded to a question raised by the Zambian Business Times – ZBT during the Quarterly Town Hall engagement held in Lusaka on Friday, 10 May.
The minister said that her ministry has set aside some money for the rebasing exercise but that there is need to take stock of what GDP really is. “The ministry has set aside a budget meant for the rebasing of the country’s GDP an exercise last conducted 10 years ago. But before we do that, there is need to ensure that we understand the current status of the economy before the funds can be released. The ministry will soon release the funds for the exercise which will enable the measurement of the improvement of the country’s economy,” she said.
However, a source had last week told ZBT in an exclusive Interview that no funds have so far been set aside for the rebasing exercise as announced by the minister. “The pronouncement by the minister of finance that government has set aside funds for the rebasing of the country’s GDP is just mere word on mere paper. In reality government has no money and that the government should instead approach institutions such as the African Development Bank – AfDB to assist it with the required resources for the conducing of the rebasing exercise”.
Concerns on budget credibility and the rebasing of the GDP have arisen following the fact that some projects which were announced for completion in 2019 which need more than six months to implement have still not been funded by end of first quarter 2019.
