Govt should adopt cash budgeting for debt management-CTPD
Written by Millennium on July 10, 2019
BUUMBA CHIMBULU writes
GOVERNMENT should move to cash budgeting and spend according to the domestic resources envelop, says Centre for Trade Policy and Development (CTPD) researcher Bright Chizonde.
Mr Chizonde said taking such a measure would assist Government to halt accumulating debt which had been increasing over the years.
According to government’s official statistics, as at end of March 2019, the stock of external debt stood at US$10.18 billion with domestic debt standing at K58.21 billion.
Mr Chizonde said the failure to implement fiscal restraints on debt accumulation had compromised debt management.
Mr Chizonde said this in a statement obtained by the Sun.
“Zambia needs to limit spending to important growth enhancing projects, prioritize the construction of strategic capital infrastructure, and enter into Public Private Partnerships for the recouping of investments instead of rapidly contracting commercial loans,” Mr Chizonde said.
CTPD, he said, continued to note the rapid accumulation of debt and consequent negative effects on Zambia’s economy.
Mr Chizonde said past austerity measures and the fiscal consolidation agenda had been ineffective due to escalated fiscal spending.
“Government needs to come to terms with the fact that Zambia, like many other developing countries, cannot borrow excessively-without unleashing dare consequences on its economy,” he said.
