No value addition in proposed budget—Chiphiko
Chairperson of the Budget and Finance Committee of Parliament Rhino Chiphiko has said the proposed budget estimates lack room for value addition, which is bad for the economy.
Contributing towards the proposed budget, Chiphiko and his team noted that composition of output is skewed towards raw agricultural exports.
He said: “So what competitiveness are we talking about if we rely on the same old goods and services that even our neighbours are overtaking us in? There is no provision for structural transformation in the budget. Mr Speaker Sir, our fiscal operations do not augur with the six principles of responsible fiscal management provided in Section 12 of the Public Finance Management Act.”
Chiphiko noted that the resource envelope is stretched to the limit and foreign assistance is being curtailed.
Said the MP: “As a result, domestic debt is ballooning, but no sustainable debt strategy has been set before the house as required by the said Act. Neither is there predictability of tax rates in the medium to long term.”
Chiphiko, whose remarks attracted cheers from opposition, further said although the Executive sits on the Monetary Policy Committee, it has not used its seat to influence a downward movement of interest rates.
Financial commentators have said the country’s high interest rates are undermining the servicing of loans and consequently posing a risk to financial stability.
