ZCSD says 2015 national budget is under siege

The Zambia Council for Social Development (ZCSD) has noted with regret that the 2015 budget is under siege.

ZCSD Executive Director Lewis Mwape in a statement to QFM News says the 2015 budget has continued to suffer significant changes after its approval by parliament.

Mr Mwape says the latest directive to the Ministers of Finance and Mines to review and reverse the new mining tax regime will significantly impact on the revenue estimated to be raised through mining taxation.

He says the public must also be aware that the President also in his wisdom introduced a new ministry at State House and various other appointments which were not planned have been made, including the appointment of Special Advisor to the president for Project Implementation and Monitoring, a new position at State House.

Mr Mwape states that the creation of such portfolios at State House will adversely affect the national budget.

He adds that while the ZCSD sees the decision by government to re-introduce maize subsidies as a move in the right direction in a bid to reduce the retail price of mealie-meal, all these good intentions must never be post budget issues as they would have negative implications on the budget performance.

Mr Mwape further states that the high depreciation of the local currency will also impact negatively on the national budget especially the implementation of infrastructure development projects which involves the importation of raw materials and equipment.

He advises that matters such as the changes to the mine tax regime and reintroduction of maize subsidies are good for the country, but that in future, such decisions must not be unilateral because they affect the nation particularly the majority poor.

He says the ZCSD sees the need for the executive to admit the economic challenges the nation is going through and engage relevant stakeholders especially the people’s representatives.

Mr Mwape states that this is in acknowledgement that Parliament spent a lot of time to debate and approved the budget, while enormous efforts in research and other preparatory activities and resources were spent which have been reduced into a single executive decision that has decimated the national budget dissolutely.

He notes that if the status quo continues, there will be a lot of supplementary budgets being requested which parliament will unanimously approve and give credibility to such questionable decisions.

Mr Mwape says the foreseen changes to the budget call for quick and speedy enactment of the Budget and Planning Bill, which would be able to offer adequate guidelines on the budget planning, implementation, monitoring and evaluation processes.

He adds that this also justifies calls by ZCSD to have a new republican constitution that will address matters such as the current unilateral decisions being made that affect the national development.