Metro

Zambian opposition leader says K19 billion allocated to defence in 2025 budget ‘misplaced expenditure’

Published

1 week ago

September 30, 2024

Sean Tembo, the President of one of Zambia’s opposition parties, Patriots for Economic Progress (PEP), has described the allocation of K19 billion to Defense and Public Order by the government in the 2025 budget as misplaced expenditure.

Tembo, who made his position known in a statement on Sunday, wondered why such a huge amount was being allocated to the sector when the country was not at war but had high poverty levels to deal with.

The PEP leader, who went ahead to dissect the 2025 national budget, noted that the total budget for 2025 was K217.1 billion, represented 26.6 percent of Zambia’s Gross Domestic Product (GDP).

He argued that in the 10 years prior to 2021, the national budget averaged 17 percent of GDP, while between 2001 and 2011, it averaged 14 percent of GDP, alleging that this meant there was a high appetite for over-expenditure under the New Dawn administration.

“A total of about K19 billion will be spent on defense and public order. For a country which is not at war and which has very high levels of poverty, this appears to be misplaced expenditure,” Tembo said.

He also stated that the 2024 national budget was projected to have a deficit of 11.6 percent, which amounts to over-expenditure at a time when the country does not have money.

Tembo further indicated that the 2024 budget deficit as a percentage of GDP was projected at 6.4 percent snd domestic debt was now K225.5 billion compared to K89.5 billion in August 2024, representing a 252 percent increase in only three years.

“Domestic arrears, which is money that government owes to various suppliers of goods and services in the country, is now K79.8 billion compared to K18.2 billion in August 2021,” Tembo stated.

He highlighted that this meant reduced liquidity needed for the private sector to grow, which only accounted for 36.9 percent of all credit issued by financial institutions, while the balance of 63.1 percent was attributed to government.

“2024 economic growth is projected to decline to 2.3 percent from 5.4 percent in 2021 at the beginning of the New Dawn administration,” he highlighted, adding that annual inflation was 15.6 percent compared to an average of 10.3 percent in 2021 and the local currency exchange rate to the United States Dollar averages K26.30 compared to K15.80 on August 24, 2021.

Tembo also said that the Monetary Policy Rate was now 13.5 percent compared to 8.5 percent in August 2021, indicating higher interest rates for borrowers with MPR-linked loans.

“Statutory Reserve Ratio has been increased by Bank of Zambia (BOZ) to 26 percent, from 7.5 percent in August 2024, meaning less money available to commercial banks to lend to economic players.”

Related Topics:budget Featured Sean Tembo Zambia

Click to comment

Metro

All the choices we have made are for sustainable, inclusive growth— Tinubu

Published

3 hours ago

October 9, 2024

Isaac Dachen

Nigeria’s President Bola Tinubu has reiterated that all the choices his administration has made since assuming office 17 months ago have been made to stop the country’s decline and put it on a path to sustainable and inclusive growth.

Tinubu, who made the assertion at the 54th Annual Accountants Conference in Abuja on Tuesday, said it was encouraging that Nigeria’s Gross Domestic Product growth for the first and second quarters of 2024 was positive, giving credence to his reforms and policies.

The president, who was represented by Minister of Budget and Economic Planning, Alhaji Abubakar Bagudu, noted that it was gladdening that inflation was on a downward trend, and the foreign exchange market was stabilising, with encouraging investment signals.

“We are continuing with innovative reform measures: digitisation of revenue collection and government services, consumer credit system to boost manufacturing and enable access to goods and services,” Tinubu said in his address to the audience.

“Our reforms include removing punitive subsidies to the economy. Revenue bleeding has reduced, and the three tiers of government are receiving higher allocations, which enable more support to vulnerable populations.

“Social investment spending is increasing, the minimum wage has increased, student loans are available, and interventions to support NANO, MSME, farming, fishing, and the livestock sector have increased.

“Our collective vision for Nigeria’s future is anchored on strengthening our institutions and nurturing a pervasive culture of accountability,” he said.

He added that his government was committed to leveraging cutting-edge technologies to boost transparency and efficiency and cultivate strategic partnerships to pave the way for sustainable development.

Metro

10 Zambian miners confirmed dead, 20 feared trapped in Mumbwa mine tragedy

Published

20 hours ago

October 8, 2024

Isaac Dachen

At least 10 Zambian miners have been confirmed dead, with 20 others feared missing after the collapse of the Lwiili Mine located in the Mumbwa region.

The devastating accident, which was confirmed by the Member of Parliament representing Nangoma, Collins Nzovu, and the Zambia Police, was said to have occured on Monday.

Search efforts are ongoing to locate the missing miners.

“I regret to confirm a tragic mining accident at Lwiili Mine in Nangoma, where 20 lives are feared lost. As of now, nine bodies have been retrieved, with 10 confirmed dead,” Nzovu stated in a video posted on his official Facebook account.

He also stated that President Hakainde Hichilema and Vice President Mutale Nalumango had been informed of the incident and urged residents and the bereaved to remain calm.

The Central Province Police Chief, Charity Chanda, who also confirmed the incident in a statement, said five miners were also injured.

“An unknown number of people were conducting mining activities when the earth collapsed on them,” Chanda said.

He added that rescue teams recovered six injured miners, but one later died at Nangoma Mission Hospital.

The police chief also said bodies of the deceased have been taken to Mumbwa General Hospital Mortuary, while the injured are receiving treatment at Nangoma Mission Hospital.