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Stop Issuing Misleading Statements, Says Kandeta
THE Ministry of Finance has urged some former Cabinet ministers against issuing irresponsible statements on the fiscal position of the country.
Ministry public relations officer Chileshe Kandeta said in a statement yesterday that there has been a “spate of dramatic statements about the fiscal position of Government, worryingly and significantly, from some former ministers”.
He said the treasury is concerned the statements, which are predicated on serious distortions of facts, have capacity to mislead the public and create unnecessary despondence.
“In the budget for fiscal year 2013, the size of the deficit and how it would be financed was indicated, debated by members of Parliament and endorsed. In all years, because of the demands of development, there have been deficits and there will be even bigger deficits as the development agenda unfolds,” Mr Kandeta said.
He said it is important for the country to reduce the imbalance between outlays on recurrent or consumption component of the budget and growth-promoting projects because “only in this way can we accelerate development, create more jobs and increase the nation’s stock of wealth”.
Mr Kandeta noted that most big economies in the world are today experiencing deficits, which are sizeable proportions of their gross domestic product.
He said Zambia’s deficit is currently about five percent of GDP and “our thrust is to keep the deficits at that level or at least not significantly much above that level to avoid running into debt service difficulties”.
He said it is important to know that the world economy has decelerated and the immediate prospects for higher growth rates are not very promising.
Mr Kandeta said all countries, including Zambia, are subject to externally-induced shocks.
“One way to circumvent these shocks is to quicken development in sectors with huge potential for growth and short gestation. Agriculture and energy sectors stand out and hence the enhanced investments in these sectors,” he said.
He also said there is ample and adequate competence and skills in the treasury to manage short-term crises and that the country should understand that there are no insurmountable problems.
Even more soothing, Mr Kandeta said, is the fact that the international financial community has confidence in Zambia because of the country’s policy consistency and predictability.
“The treasury wishes to appeal to citizens, especially those who have held responsibilities in Government, to desist from dubious accolades and irresponsible limelight which can engender alarm and erosion of confidence in our peaceful country. We all have individual and collective responsibility and duty to maintain a favourable image of our country,” he said.
Posted by Editor
on August 10, 2013. Filed under LATEST NEWS.
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G
August 10, 2013 at 3:05 pm
Though I am not a supporter of your but I think your are full of Wisdom, lets protect this country.
HH for Presidency next year 2014 by this time.
THINK TANK OF ZAMBIA
August 10, 2013 at 7:06 pm
Justadmit mismanagment of running the ministry of Finance due to uncontrolled spending.
THINK TANK OF ZAMBIA
August 10, 2013 at 7:06 pm
Just admit mismanagment of running the ministry of Finance due to uncontrolled spending.
hm
August 11, 2013 at 6:13 pm
I am very disappointed with this kandeta chap. i thought he was going to say government has no deficit as generally believed. the chap has just comfirmed that the budget is runnin a deficit of 5% of GDP. my foot. and that is before new salaries are paid,10 more bye-elections, 7 unplanned districts etc. Kandeta, u are a civil servant and be advised to desist from defending wrong. Nawakwi is spot- on. Ministries have only been funded 3 times since jANUARY 2013. No wonder MLSS has ended up with a debt of 1 billion.
M'zambia
August 11, 2013 at 6:33 pm
Your boss Chikwanda is now admitting to the obvious. I guess it feels like he stepped on your balls.
sumfing
August 12, 2013 at 6:24 am
You hope to confuse the masses because you cannot convince the masses. All the jargon you’re slinging can be summarised by saying “we are broke and trying to patch a sinking cannoe while paddling and making new holes”
brainboxer
August 12, 2013 at 9:19 am
if the 4ma ministers are wrong,y are u bothered mr kandeta.u created this quangmire yoselfs by overspending on undesirable by elections,u are now panicking
SOLOCHI AARON
August 12, 2013 at 9:24 am
CAN THE FINANCE MINISTER ISSUE A STATEMENT ON THE ISSUE.IF GOVT IS BANKRUPT LET HIM SAY SO.THEY ARE A LET DOWN.
Ndaje Kahks
August 12, 2013 at 9:52 am
What are the signs that the country is bankrupt? Educate us more on this otherwise the whole issue is political from both sides.
kangwa
August 12, 2013 at 12:00 pm
Its do not KUBEBA those who thought all will be well re-grate.everything is becoming unbearable.We are in maningi trouble just like Liwewe used to say those days when i was doing my form 2 at CHIZONWE.