EAZ urges govt to deal with budget deficits

Government has been advised to realize that the current global economic environment entails dealing with the issue of budget deficits.

Economic Association of Zambia (EAZ) President Chrispin Mphuka has warned that if government does not deal with the issue of budget deficits, this may have an impact on the growing debt.

Dr. Mphuka says the manner in which the country’s exchange rate is behaving is already a sign of what should be expected should government neglect to contain budget deficits.

He has told Qfm News in an interview that if budget deficits are put under control, there is a likelihood of stability in the Zambia’s economy.

Dr. Mphuka has also agreed with the observation that the country’s economy may not see much activity this year owing to the changes in the 2015 national budget arising from the Mines Tax regime change.

He states that this is a consequence that may not be avoided because changes in the national budget already suggest that government will have to cut down expenditure on some already planned projects.