‘Extend controls to all govt organs’
GOVERNMENT should roll out the Integrated Financial Management Information System (IFMIS) to all ministries, provinces, departments and agencies to ensure that no money is spent outside its provisions, a think tank has advised.
The Policy Monitoring and Research Centre (PMRC) said the domestic debt stock as at end of March 2019 was K58.21 billion (representing 21 percent of gross domestic product). Executive director Bernadette Zulu said PMRC anticipated that in 2019 economic growth would slow down as a result of adverse weather conditions negatively impacting on agriculture production and the energy sector. Ms Zulu said the think tank was worried about the recent depreciation of the Zambian Kwacha against the United States dollar. She said there was also need for Government to put in place measures that guaranteed stable exchange rates to hedge against rising interest payments on sovereign debts. “Government should put in mitigation measures to reduce impact of adverse weather conditions in the agriculture and energy sectors, and the consequential negative impact on the GDP. “PMRC further encourages Government to roll out the IFMIS to all Government ministries, provinces, departments and agencies to ensure that no expenditure occurs outside the system,” Ms Zulu said. She implored Government to continue providing an enabling environment for increased investment in renewable energy and adoption of climate smart agricultural practices. She, however, said inflation over the first four months of 2019 remained within the target band of six to eight with an average of 7.7 percent from an average of 8.0 percent in the fourth quarter of 2018. Reserves position, she added, Mrs Zulu said at the end of February 2019 foreign reserves were at US$1.43 billion (1.6 months import cover) from US$1.56 million (1.8 months of import cover) at the end of 2018. She said in the first quarter of 2019, domestic revenues stood at K14.99 billion representing a 4.4 percent margin above the target. Ms Zulu said domestically financed expenditure amounted to K12.8 billion, representing a margin of 11.5 percent below target projection.
There was also need for Government to put in place measures that guaranteed stable exchange rates to hedge against rising interest payments on sovereign debts”, - Bernadette Zulu