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Economic Association of Zambia (EAZ) has raised concern over government channelling of most funds to debt restructuring and wage bill, stating that this is affecting the growth of key economic sectors.
EAZ Secretary, Emmanuel Zulu, said it was worrying that most of the resources were being channelled towards public service wage bill and debt servicing, neglecting sectors that could help to improve the dwindling economy.
Ministry of Finance recently disclosed that from the K23.1 billion released for public service delivery K3.9 billion was channelled towards salaries and K12.7 billion towards debt servicing.
Reacting to this, Zulu, in a statement issued on Monday said government should have channelled such huge sum of money to improve key economic sectors in order to better the economy.
“While government aims to create jobs and also dismantle debt it must carefully balance with fiscal consolidation to ensure service delivery is not compromised,” he said.
Zulu pointed out the importance of investing in economic growth, stating that a robust economy was key to sustainably managing and servicing Zambia’s debt.
He, however, expressed happiness about the government’s efforts to diversify its revenue base, as this was critical to cushioning the private sector from economic challenges.
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