Q FM Africa's Modern Radio
The Jesuit Centre Theological Reflection (JCTR) has noted with concern that the 2016 national budget seems to be insensitive and unresponsive to social and economic challenges people are currently facing.
The Centre notes in a statement that while a few concessions have been given to sectors like energy to spur growth of the sector and mitigate the current energy deficit, individuals have been left in the cold.
It points out that even the standard adjustment to the tax free Pay as You Earn threshold that is given on annual basis to cushion workers from inflationary pressures has been denied in a year when the cost of living has seen enormous increase.
JCTR has also noted with concern that the allocations to social sectors such as education and health have shown reductions in nominal terms while others have seemingly increased citing Social protection which has been allocated K1.3 billion in the 2016 budget.
JCTR says while it appreciates Government’s stance of slowing down on the expansionary path it has been treading on the past four years, it would be harsh to pay a blind eye to the worsening social conditions of the people.
It also observes that while K0.5 billion has been allocated to the creation of a sinking fund to help in the repayment of the Euro Bonds when they become due, it might be imprudent to do so when you have a huge deficit.
It says this means borrowing money to save instead of investing in projects that can give the country some returns.
On the revenue side, JCTR is concerned that the percentage by which the 2016 budget will be financed from taxes has reduced from 67% targeted in the 2015 budget to 57% which will consequently result in increased borrowing as can be seen from the doubling of the foreign financing component from K4 billion in 2015 budget to K8 billion in 2016.
It adds that while the budget speech may have showed some good budgetary allocations; the devil might be in the detailed budget, and has since called upon government to quickly release the yellow book to enable citizens do a detailed analysis of the budget.
JCTR has further urged government to be prudent in its spending and ensure that planned activities are implemented as planned as only this will safeguard past achievements and secure the future as the budget theme states.