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Lungu Moves To Cut Govt Spending
President Edgar Lungu has announced wide ranging austerity measures in a bid to reduce the cost of running government.
He says the measures are necessary in view of the current budgetary pressures and in order to bring the country back on the path of economic stability.
Speaking during his first press conference since assuming office in Lusaka this afternoon, President Lungu has in this regard restricted foreign travel by Ministers, government and quasi-government officials to essential meetings only with the size of delegations restricted to the barest minimum.
President Lungu has since directed government ministries, provinces and spending agencies start utilizing the skills and resources available in the country’s missions abroad.
He has further directed that local travel by Ministers and other public service officials be significantly minimized.
President Lungu has also suspended the establishment of new missions abroad and deferred the establishment of a national airline until such a time that the economy is able to afford the high establishment cost.
President Lungu has further directed that all government ministries, provinces and spending agencies cease the procurement of or the entering into contracts for new works including in the road sector.
He says focus should be on the completion of ongoing projects.
President Lungu says there is need to realign the financing of the ambitious infrastructure development programme to ensure budgetary sustainability.
And President Lungu has noted with regret that inflation is artificially accelerating due to the dollarization of prices, a practice he says is illegal and immoral.
He has since appealed to businesses in the country to with immediate effect stop pricing their goods and service in dollars.
He states that there is no justification in dollarizing the market.
Mr. Lungu has further directed the Bank of Zambia and the Ministry of Finance to ensure that this pronouncement is backed by law.
Meanwhile President Lungu says failure to adhere to cost reflective pricing in petroleum procurement has had a negative impact on the budget.
He says by the end of 2015 government would have spent in excess of US$300 million about K3.6 billion in subsidizing fuel pump prices.
Mr. Lungu says an additional US$200 million approximately K2.4 billion is in arrears will have to be paid next year.
He states that this is clearly unsustainable.
The Head of State has since directed the ministries of Energy and Finance to sit down with the ERB and proposal measures in the petroleum pricing which Cabinet can look at to reverse the current trend.
President Lungu has further directed the ministry of energy and water development, the ERB and ZESCO to implement a new electricity tariffs schedule and progressively move to full cost reflective tariffs thereafter.
President Lungu has also announced that in government’s resolve to improve the power supply situation in the country, he will this Saturday be launching the 750 Mega Watts Kafue Gorge Lower hydropower station.
He emphasized that this is the first major investment the country is making in 40 years.
Posted by Editor
on November 27, 2015. Filed under LATEST NEWS.
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Nelson
November 27, 2015 at 3:14 am
Edgar Lungu could have just resigned. This could have been the best decision, and he could have been a hero.
Ba ZED
November 27, 2015 at 4:06 am
Edgar Lungu has increased the Fuel prices and the electricity tariffs by 50%. This means if you used to by a 1 liter of fuel at K10, you will now be buying it at K15. And if u used to buy 200 ZESCO Units at K100, u will now be charged K150 for the same units. The question i have to all Zambians is that, where is Edgar Lungu taking us? The man seem to have a serious mental disorder and Chaina may be the best hospital for him instead of Minasoko Hospital or South Africa.
2016, Edgar Lungu will lose the elections just like Rupiah Banda in 2011
Political Adviser.
November 27, 2015 at 4:15 am
Edgar Lungu’s speech was more of an outgoing president. Its like he is psychologically biding farewell to Zambians and prepare them to understand and accept his eminent loss.
Farewell Mr. President. 2016 tapali ichobe.
Experts-Politics.
November 27, 2015 at 4:33 am
Yesterday’s Press Conference exposed Edgar Lungu’s visionless leadership and greatly de-campaigned him to many Zambians. I wish he never had one. Political Experts who include Kharzia Zulu and Sakwiba Sikota have concluded that his popularity has fallen from 35% as on 25th November 2015 to about 31% on 27th November 2015.
I feel pity for Mr. Edgar Lungu. He has lost the Presidency, its only the day that we are waiting for to confirm people’s choice.
Safe Journey back to Chawama Mr President.
Its now clear to everyone that HH will emerge victorious in 2016.Congratulations to HH in advance.
Ifintu ni Dollar
November 27, 2015 at 4:53 am
Awe sure ba lungu kuwayawayafye.
Ifintu ni Dollar
November 27, 2015 at 4:54 am
Ba lungu Bena kuwayawayafye mwe
Incognito
November 27, 2015 at 5:41 am
“IFINTU NI LUNGU CHABE”
When we castigated this government here for spending recklessly and for having no sound economical plan, the PF cadres called us names and said we were tribal and bitter.
We were merely being patriotic, we demanded nothing but financial and managerial integrity from Sata, Lungu but unfortunately this was beyond the cadres reasoning capacity.
” A patriot must always be ready to defend his country from his government ” – Thomas Payne.
I hope this will make Zambian voters repent from their stupedity and vote wisely next time around.bian voters repent from their stupedity and vote wisely next time around.
kakolwe
November 27, 2015 at 5:46 am
Our agony will be trying to replace Lungu with an extremely complex thief who can dwindle Zambia and ask them to applaud him. Ask Mpho Tsedu. Doomed Zambia.
kakolwe
November 27, 2015 at 5:43 am
Where were you all this time Mr President!
When the cancer in the foot has grown to reach the hip, that is when you wish to take corrective measures in the foot?
Sorry, an amputation, at the hip, is inevitable. There are extremely lass chances of you leaving the operating table ALIVE!!!
Ask Judge Joe Bidden.
yongwe
November 27, 2015 at 5:58 am
When Edgar assumed office, he clearly pointed out that he will carelessly spend money traversing across the world…and Zambians spoke up against that and his excuse was that he wanted to mend the country’s tarnished international relations.
I posted here when Edgar took an entire plane load of jokers and entertainers to New york, why if its within UN’s initiative to excuse poor countries from attending such costly meetings and be represented by their foreign missions in the US…that he knew is more logical…and he is looking in that direction now….mwebantu to be in power does not mean you are the cleverest and you should not listen..Africa is thousands of years backward because of the mr big man mentality of our leadres…its time to wake up to reality Africa.
Baloteli Senior
November 27, 2015 at 7:10 am
Talking of cutting costs, isn’t he the same one a fortnight ago that carried a delegation of 251 to the USA with many musicians on the private boaded jet to the extent even the Malawian president condemned him? Why do we forget do fast.
Onyx power @vampiros
November 27, 2015 at 7:16 am
Those are serious prouncements only a brave president can make them. If we’ll implemented we are going to progress never before in zambias history.only hard workers will see sense in lungus announcement.
Ba pefi
November 27, 2015 at 7:33 am
Ba zed muli ba bufi bakolwe am frm the filling station buying fuel
MCCM
November 27, 2015 at 7:33 am
Its best to have this austerity measures than allowing the economy to collapse.He is a very brave president.The period remaining for him is longer than what he has saved so @kakolwe better late than never.
live and love
November 27, 2015 at 7:43 am
kakolwe well spoken ECL is the man for 2016 .
ZINGELO
November 27, 2015 at 8:01 am
Nelson,Ba ZED, Political Adviser,Experts-Politics and Hildah Malama mwembwamwe
ZEE WORLD
November 27, 2015 at 8:17 am
I’m very disappointed with E.Lungu i think this man he is politically impotent.
ZEE WORLD
November 27, 2015 at 8:18 am
Lungu is taking us for granted
ZEE WORLD
November 27, 2015 at 8:24 am
The enemy generally comes against people suddenly by bringing storms into their lives.When such sudden storms come,the victims will discover that they are surrounded by storms on all sides.
observer
November 27, 2015 at 8:34 am
The move taken by the president is superb,it is not out of this government being lecless but the ddinamix of the global economics .as you ar aware China being the largest consumer of copper has reduced on importation of this commodit.therefore it simply means government can not do business as usual.
Great One
November 27, 2015 at 9:28 am
On social media, you will find a bunch of lazy and visionless amr chair critics who just want to oppose anything! They even oppose their anus from defecating when the system urges it to defacate! There is nothing that Lungu E.C. will do or say that will make sense to them. Lazy charACTERS! The world economy is in recession and Zambia cannot escape which depends on imports and the only major forex earner – copper. I am left to wonder what sort of fools we have around that bury their heads in the sand for the sake of politicking! Give credit where credit is due to the President and criticise the President where they need to be criticised and not just hungry-angry-bitter guys who even criticise God for no killing them in their sleep and allowing them to see another day in the land of the living!
Amake Mwana
November 27, 2015 at 9:48 am
Cut your salary by more than 50% then we can talk. otherwise, this is just cheap talk. HH for president 2016. We have had enough of this government and their poor governance.
ben
November 27, 2015 at 9:52 am
It’s too late my president where were u all this days after things ve gone bad. Why can’t u cut yo cabinet aswel things re bad to yo side i wish if u did nt win january election any way filacitika next year kuyabebele every thing has a it’s time. THERE’S TIME TO CEREBRATE AND THERE’S TIME TO CRY TIME TO SOW AND TIME TO HARVEST NEXT YEAR U WILL HARVEST WHAT U VE PLANTED
SPEAR NGOZI
November 27, 2015 at 10:49 am
Good Leader Are Those Who Use Their Abilities To Offer Solutions When Things Are Hard,not These Cowards Who Are Only Crying That They Are Victims Of Nature And Outside Forces.These Economic Impotent Must Be Voted Out Next Year!
gumu gumu
November 27, 2015 at 1:01 pm
The job loses were iminent . Wat worries us is the way this drunkard has handled the issue. He pretended as if everything is OK in de first place only to stat panicking when things are going frm bad to worse.If he can’t keep my job why shud I keep his . Enjoy yo last jemason @ state house coz next year u will join de old foolishman rupiah in visting courts.
Advocate
November 27, 2015 at 2:24 pm
Cutting expenditure, after having been the main culprit to spend senselessly hiring jets and maintaining a bloated cabinet.Your church sir is built using public funds not budgeted for.Prepare your arrest for the same together with your high priest.Your going to work from copperbelt yielded nothing apart from unnecessary expenditure. You have killed the economy of your country.You,the Post and your funders are criminals who need to be ruthlessly buried alive.
virgin angel
November 27, 2015 at 2:26 pm
VIVA ECL! ABASH amateur politicians!!! Let him start fro the branch level! Even his MPS are more experienced, rather vote for Siamunene!
jebo
November 27, 2015 at 3:04 pm
let it not b only talks as he is better known on talks only not on working on the talk.
jebo
November 27, 2015 at 3:12 pm
wen oposition said that u ar spending much on travelling, sum cadre minded pipo and vi ministers insulted. now let it not b tok only, as u ar better known to only tok not work. do the tok now.
Grassroot.com
November 27, 2015 at 3:16 pm
It is getting interesting to watch a press conference
addressed by the republican president only to talk about
issues HH has been advising him for a very long time now.
HH is an intellectual with economic dynamics in his mind
and a man vested with full vision on economical
governance. It is good that now PF government has accepted
that what HH and UPND has been telling them is truth.
Remember HH told them that Edgar must reduce on travels
as it is a cost to govt coffers. There are so many issues
President Lungu talked about that HH even wrote to Him and
all was trashed in the bin and insteady they insulted him
and called him a bitter man. Now are you confirming that
indeed HH is the only solution Zambia needs? Is HH still a
bitter man in your eyes? Are you going to apologise to UPND
for the insults over what now you are admitting? When we
say HH is the only man Zambia needs, we speak with honest
and truth. The truth pains and now you are in the very web
you despised most. Please next time when you are advised
by people who know things better than you, learn to
appreciate because the power of the Lord is very good to
those that find truth in their hearts. We can safely say HH is
the next president as we can all bear witness that all what he
says, is deep correct and indeed he will redeem Zambia
from extreme poverty. Come vote for HH dearest to see true
workmanship.
hachigaba hababwa
November 27, 2015 at 4:00 pm
empty tins makes much of noise,++@amake mwana,upnd caders,ati 2016 mulewina?keep on dreaming.
demmy
November 27, 2015 at 7:24 pm
When you are out of air time do you scream blue murder?
The truth is that you want a subsidized life but want someone else to foot the bill.
Treat power and fuel like air time.
demmy
November 27, 2015 at 7:26 pm
Does HH piss fuel and fart electricity.
wells
November 27, 2015 at 11:29 pm
Mwanya ba pf. Chimikalipa pantu mwalilwala ukusapota ifyamafi mwe mbwa mwe. U think zambians ar stupid like most of u? Tukamimona ba idiot this tym around tukatekafye nemitima to ensure that we mark infront of HH. Am happy very few zambians ar stil listening to u idiot. Most of them hv alread made up their mind resolved to vote for HH.
cuundu caitwa
November 28, 2015 at 10:17 am
If the pronouncements were HH ideas why are you blaming the presdent? is it that u becomin too political or what. If the pronouncements wont yield any results then HH is the worst. Next………
Hildah Malama
November 27, 2015 at 3:02 am
For me and my family and friends including all Zambians affected by economic crises caused by the visionless Lungu, its HH in 2016.
Darious A
November 27, 2015 at 3:06 am
He could have cut his bloated cabinet and regret chartering planes at $ 4000.
Gerald
November 27, 2015 at 3:11 am
These austerity measures will just affect the poor 10 times. Fuel prices will be doubled as well as ZESCO tariffs.Poverty in Zambia will worsen in 2016.
Onyx power @vampiros
November 27, 2015 at 7:19 am
What is $4000 naimwe. Sometimes it’s wiser to keep quiet because no one will see your stupidity
Amake Mwana
November 27, 2015 at 9:49 am
VIva HH! Viva UPND!2016!