Prioritise fiscal discipline first - Hamududu
FISCAL disciplinary measures must be prioritised as the government tackles its huge debt with China, says Party for National Unity (PNU) president Highvie Hamududu. Mr Hamududu said that while the need to restructure the huge debt was urgent, Government should consider options out of the problem, housekeeping fiscal disciplinary measures were paramount.
He said in an interview that disciplinary measures should be actuated to seal the loopholes that brought about the debt crisis in the first place
Mr Hamududu reiterated that the debt restructuring that the government was seeking with China or any other partner should be proceeded by clearly defined and implemented fiscal disciplinary measures.
He explained that the measures would seal the long entrenched fiscal loopholes and general inefficiencies that e[isted in the public service.
“Seeking restructuring of the debt alone will not solve our country’s debt challenges, because even if the debt is favourably restructured, the country will sooner than later, fall back into unsustainable debt because of the fiscal to[ins that are entrenched in our government system that will contaminate any debt relief,” said Mr Hamududu.
Mr Hamududu advised that before sending a high powered delegation to China, robust and far reaching fiscal and institutional reforms should first be put in place. He warned that failure to seal fiscal loopholes Zould render the international goodwill to assist Zambia in debt relief be permanently squandered.
Mr Hamududu pointed out that the lack of international support could easily consign the economy to a dustbin of permanent failure.
And Mr Hamududu said that there was urgent need for the government to engage Chinese authorities with a deliberate winwin attitude and formula so that Zambia did not engage in unfavourable deals.