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Zambia Cannot Sustain Herself On Borrowed Resources – Shakafuswa
JONAS Shakafuswa has warned the PF that Zambia risks going back to being a highly indebted country if its rate of borrowing is not controlled.
On Tuesday, chief government spokesperson Chishimba Kambwili said the PF government was borrowing responsibly and within acceptable limits. But Shakafuswa said the PF should be mindful that the economy of the country was already under stress.
“We are under stress to pay contractors and other obligations which government has got and the money is not enough. We were from having elections recently which cost us a lot of money and I hear very little of that came from donors. So the economy is already stressed. If we continue borrowing, we are increasing the component of constitutional and statutory expenditure, which will take us back to the [Frederick] Chiluba days where we were not able to buy even a pen because the money is going to paying for debt,” he warned.
“I think Chishimba Kambwili’s statement when he said we are borrowing responsibly was not a qualified statement. I don’t think he was in a position to talk about finances because I think his trade is something else. He did not put thought to what he was saying.” Shakafuswa said countries and institutions where Zambia was borrowing from would not simply forgive the debt as had happened in the past. “We have to be very careful because I don’t think the countries we are borrowing from will be kind enough to forgive our debt,” said Shakafuswa.
“We cannot sustain ourselves if we are going to use borrowed resources. Today, about 60 per cent of the budget is going to salaries, now if you add grant-aided institutions like the councils and the other quasi-government institutions, the bill is coming to around 70 per cent. When you include the running of government, it is coming to about 80 per cent of the budget. Now add statutory and constitutional expenditure, a component which includes loan repayments, it is coming to 80 plus per cent. The question is how much money remains for development?”
Posted by
New Educated Zambia
February 21, 2015 at 7:35 pm
A tad bit late mr shaka! Good advice but too late. You see when you have educated people in power like we had mwanawasa, you learn to save for a rainy day and ensure sustainable borrowing levels. However, when you have illiterates, like we had from september 2011, who claimed to be patriotic in power then what you will see is careless borrowing with no care about future generations and the impact on them. Please let us get rid of these rates and vote in HH. A true statesman and economist!
Chitutuma
February 21, 2015 at 8:01 pm
What’s this most reviled Tonga-type character talking about?
20.01.15
February 22, 2015 at 12:34 am
Leave that tonga alone,he is not normal,balimunyela saana amasushi ya mgombe so he has become so bitter
New Educated Zambia
February 22, 2015 at 1:42 am
hehe i have noticed you only start commenting at the same time everyday. Usually late hours. Am sure this cadre is suffering working as a an evening toilet cleaner and yet he is adamant about having hope in a government that doesnt seem to have an idea on how to better him. Who said i was tonga? You have made that assumption due to your closed circut brain. you pillock. Open your mind and smell the coffee
New Educated Zambian
February 22, 2015 at 2:55 am
Borrowing for infrastructure development is not bad because it benefits the future generation unlike borrowing for consumption e.g. subsidizing on fertilizer and milimeal or fuel that is waste. We the literates will avoid borrowing but depend on our own resources to finance all the projects.
John kabengele
February 22, 2015 at 4:28 am
Shaka, these maron, like boss like Kambwili, it does not register what you are telling them. Isn’t shame for PF?