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The Jesuit Centre for Theological Reflection (JCTR) has called on international creditors to promptly offer Zambia debt relief.
This, it said, will critically free up the country’s fiscal space to support the welfare of the most vulnerable amidst the high cost of living.
>Meanwhile, the cost of living for a family of five as measured by JCTR Basic Needs and Nutrition Basket (BNNB) for the month of April 2023 has increased by K109.39 to K9, 112.
This is according to the latest BNNB Statement released by JCTR on Thursday.
The statement said the government should continue the practice of being transparent on public financial matters by providing timely updates and details of various proposed development options.
“Government should continue providing a robust domestic resource mobilisation strategy to prevent further debt contraction, support social sector spending and arrest the high living cost,” it indicated.
The statement noted that more initiatives should be embarked upon through the national budget to provide cost of living relief, particularly for the dignity of vulnerable groups by among other things revising upwards Pay-as-You-Earn (tax bands, capitalising on value added tax) and corporate tax.
It also called for a broad-based consultation in the current ongoing budget preparation as well as Medium Term Expenditure Framework (2024 to 2026).
This will allow for the exploration of both income based and cost-based options to enhance economic growth and curtail the rise in the cost of living.
Read more: Cost of living records improvement in March, as food prices drop slightly
April BNNB has seen an increase of K109.39 over the K9, 003.21 recorded in March 2023 to K9, 112.6.
The basket’s upward movement has been attributed to price increases in food items such as 4kg onion, which increased by K51.96 from K76.93 (19.23/kg) to K128.89 (K32.2/Kg), 14kg other fruits, which increased by K49.09 from K402.38 (K28.74/ kg) to K451.47 (K32.25/ kg) and 5kg chicken respectively.
It stated that non-food items in the basket, however, saw slight decreases, including 4 boxes of 400g wash soap (Boom) which dropped by K10.66 from K76.98 (K19.25/400g) to K66.32 (16.58/400g) and 3 tablets of soap, which dropped by K10.29 from K41.56 (K13.14/ tablet) to K31.27 (K10.42/ tablet).
“During the month of reflection, an analysis of the performance of various major economic fundamentals revealed slight variations. The Zambian kwacha appreciated against international currencies such as the US dollar by slightly more than 10 per cent.
JCTR indicated that the annual inflation rate increased to 10.2 percent in April 2023, up from 9.9 percent in March 2023, attributable to price increases in certain non-food products according to the Zambia Statistics Agency.
Nonetheless, it stated that the Energy Regulation Board (ERB) reduced the price of diesel at the pump, while the price of petrol remained unchanged.
JCTR applauds the government, through the Ministry of Finance and National Planning, for commencing the preparations for the 2024 national budget on schedule and in accordance with the law,” the statement said.
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