‘Budget review should stimulate growth’
THE revision of the 2020 National Budget should tilt towards economic stimulation than raising more revenue. Party of National Unity president Highvie Hamududu has suggested.
And the opposition leader noted that the surge in copper prices, if sustained amidst the Coronavirus disease (Covid-19) will be a miraculous development for copper producing economies like Zambia.
Mr Hamududu said if that scenario continued in the medium to long-term, the long overdue and holistic growth-oriented policy to grow the sector would become even more inevitable.
He hoped that Finance Minister, Bwalya Ng’andu, would address this aspect as he revised the 2020 budget.
Mr Hamududu said the revision of the budget should tilt towards economic stimulation than raising more revenue.
“Populist positions, not informed by evidence must be ignored if our economy has to have the recovery and growth we so urgently need.
“The monetary policy instruments have been taken to their ultimate limits as the real economy managers are failing to reboot the economy for recovery and growth, the economic recovery, growth and stabilization programme, the Zambia Plus, and the subsequent fiscal consolidation, have not been fully implemented, because therein lies the real solutions,” Mr Hamududu said.
He said Dr Ng’andu had “one and half opportunities” before him, to put the economy back on track, through his envisaged half-year revision of the budget and the 2021 national budget.
“The economic stimulus must be holistic with a short, medium and long- term perspectives, for it to work. Firefighting cannot resolve deep-seated economic challenges currently obtaining,” Mr Hamududu said.