The Zambia Congress of Trade Union – ZCTU has stated that the 2020 National Budget presented by the Minister of Finance Dr. Bwalya Ng’andu on 27 September 2019 has not prioritized some critical areas of the economy and that it is not aligned with the prevailing economic conditions.
The Union’s Secretary General Cosmas Mukuka said the 2020 budget did not address the opportunity to prioritize rail transport by enforcing statutory instrument number 7 (Railways Transportation of Heavy Goods, Regulations Act of 2018) that provides guideline for transportation of heavy cargo.
Addressing the media in Lusaka on 2 October 2019, Mukuka said in order to enhance economic growth and job creation, government should revitalize the rail system, as it will help to create jobs and provide relief for road infrastructure hence the need of dedicating resources towards the railway sub-sector.
The Union has further stressed that government’s proposal to reduce spending on education from 15.3 % in 2019 to 12.4% in 2020 and health from 9.3% to 8.8% in 2020 is a serious drawback as the decision could have adverse effects on literate levels in the in the years to come.
Mukuka said the decision also goes against the international instruments that the country is already signatory to such as the SADC protocol in education and training, which states that 20% of the national budget should be allocated to education and training.
The secretary general has in this vain proposed that government should reduce allocation on Defense Forces and Public Order Act to finance higher priority programmes in education and health stating that Zambia is not at war hence investment in education and health will have much higher economic returns.
Meanwhile, the union is saddened that the Income Tax Thresholds has remained unchanged stating that considering that there was a minimal increment of 4% during the bargaining for public service workers for 2020 fiscal year, many employees in the private sector got marginal increments to their salaries.
Mukuka has since explained that 2020 budget needs to adjust the non-taxable thresholds for the current K3,300 to K5,000 in the with the current basic needs basket as per studies done by the Jesuit Center for Theological Reflection – JCTR.
“The adjustment will free some income currently being taxed under the lowest tax band and add to disposable income for workers and avoid imposition of tax on workers who cannot meet basic need,” he said.
