GROWTH BUD­GET WINS KU­DOS

Daily Nation Newspaper - - FRONT PAGE - By BUUMBA CHIMBULU

THE 2018 na­tional bud­get is very promis­ing as it is fo­cussing on the growth of the econ­omy, es­pe­cially that it ex­plains how Gov­ern­ment in­tends to deal with its debt, says Pol­icy Mon­i­tor­ing and Re­search Cen­tre (PMRC).

PMRC Head of Mon­i­tor­ing and Eval­u­a­tion, Salim Kaunda, said the debt ser­vic­ing mech­a­nism was crit­i­cal to the growth of the econ­omy hence Gov­ern­ment’s de­sire to re­duce

“An­other crit­i­cal as­pect has been that Gov­ern­ment wants to min­imise on bor­row­ing that is very key. Peo­ple were in­ter­ested to see how bor­row­ing will be be­cause Gov­ern­ment also has tax obli­ga­tions or debts to pay back ex­ter­nally and do­mes­ti­cally,” he said.

Re­act­ing to the 2018 na­tional bud­get pre­sented by Fi­nance Min­is­ter Felix Mu­tati yes­ter­day, Mr. Kaunda said Gov­ern­ment’s in­ten­tion to re­duce bor­row­ing was a step for­ward in re­duc­ing debt ac­cu­mu­la­tion.

“It is a very promis­ing bud­get and we will con­tinue analysing it, of course it is still talk­ing about re­cov­ery and growth but more im­por­tantly, is that the Zam­bia-plus will still be im­ple­mented side by side the bud­get,” he said.

Mr Mu­tati, said Gov­ern­ment had put in mea­sures to dras­ti­cally re­duce the rate of debt ac­cu­mu­la­tion, at­tain a cheaper and longer debt ma­tu­rity pro­file.

Mr. Mu­tati em­pha­sised that fu­ture bor­row­ing would be un­der­taken strictly at sus­tain­able lev­els.

“Gov­ern­ment has pub­lished the Medium Term Debt Man­age­ment Strat­egy that seeks to re­turn the debt to low risk of debt distress. The strat­egy out­lines mea­sures to dras­ti­cally re­duce the rate of debt ac­cu­mu­la­tion, at­tain a cheaper and longer debt ma­tu­rity pro­file,” Mr Mu­tati said.

Mr Mu­tati

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