STATE NEEDS PRUDENT ECONOMIC PLAN-EXPERT

AN ECONOMIC researcher says government needs to go back to the fiscal consolidation plan that has been in the =ambia for some time and which can take care of the 9 budget. Mr Felix Nkulukusa said the 2019 budget was coming at the time when the Kwacha had continued to weaken in light of the country’s fiscal position and higher fuel prices and other factors burdening the private sector. He said the consolidation would create a macroeconomic framework that would be able to pay the private sector, creditors and use it to engage with International Monetary Fund (IMF). He was speaking at a presentation at a public forum at Copperbelt University organised by Oxfam and other civil society organisations, on the 2019 national budget under the theme ,’Beyond the numbers what the 2019 budget isn’t saying.’ The former Finance permanent secretary said the country’s macroeconomy was not stable and the only way to stabilise the economy was by going back to the fiscal consolidation plan. He said an ambitious fiscal consolidation plan would be able to provide a bailout package for government as well as signal its commitment to the fiscal prudence. Mr Nkulukusa said government should also re-engage with the cooperating partners particularly the IMF as that would not only help with the bailout package but also with the balance of payment support which would bring about a macroeconomic stability. Mr Nkulukusa said government did not have resources to implement the budget and recommended that it partnered with the private sector and refer their resources into the Zambian economy. He said government could not provide all the services to its people without borrowing and must therefore partner with the private sector that was willing to invest their money.