A Lusaka based Financial Analyst Maambo Haamaundu says as the country awaits the presentation of the National budget by Minister of finance Dr. Bwalya Ng’andu, it is prudent that a substantial portion of money is taken to debt servicing.
Hamaunda said Zambia has in recent past been hardly hit with economic challenges of which debt is a big contributor, hence the need for particular attention if the country’s economy is to recover. The exchange rate also depreciated and we expect to hear on measures to stabilize the local unit.
He has told the Zambian Business Times – ZBT in an exclusive interview that members of the public should not expect much to be fixed, stating that aside the current power deficit and agricultural challenges, more funds are likely to be consumed or directed towards debt servicing and salary payments of public workers.
He has since called on government to consider cutting down on unnecessary expenditure by government officials which he said has heavily affected the country’s treasury, adding that, there is need to also exercise commitment by sticking to plans set to improve the situation.
Hamaundu added that government needs to focus on servicing domestic arrears stating that the domestic economy need assimilation as it has potential to undermine the growth of the country if not paid attention to.
“There is likely to be very little or no money available for economic activities, which is also a worry, but we only hope that having had government announce that it will put in place austerity measures by reduction of expenditure, we hope to get a report on how much has been saved and how much has been directed to clear domestic arrears,” he said.
He noted the need by government wings to put in place economic decisions and critical evaluations before implementation of any projects in the country to ensure it is financially supportive in the present or near future. The board to scrutinize the projects and an effective evaluation process needs to be put in place.
The 2020 National Budget is expected to be presented on the 27th September 2019 by the Minister of finance. The president’s state of nation – SONA address indicated the desire for the government to do more with less. So innovative ideas on how to get more with less are what is expected from this budget.
