Q FM Africa's Modern Radio
The Zambia Institute for Policy Analysis and Research (ZIPAR) says government will face an uphill battle in raising revenue in 2016 if the current economic conditions do not improve.
ZIPAR also foresees a possible derailment of the fiscal consolidation measures announced in the 2016 national budget owing to expenditure pressures arising from a fast-increasing public sector wage bill following the lifting of the 2-year wage and employment freeze and increased spending on road infrastructure.
ZIPAR Executive Director, Pamela Nakamba-Kabaso says besides the high debt service payments government will have to undertake, the reality of holding the 2016 general election makes it even more difficult.
She states that ZIPAR is of the view that these social, economic and political costs therefore become a threat to the consolidation measures government has outlined in next year’s national budget.
And Dr. Kabaso has observed that government’s proposed increases in fees, fines and charges on land are no guarantee that these non tax revenues will be raised.
Dr. Kabaso says this is given the lessons from the 2015 botched mineral royalty tax and depressed economy.
She states that ZIPAR in this case fears that it is unlikely that the fiscal deficit for next year’s national budget will be reduced to 3.8 percent of the GDP from 6.9 percent of the GDP in 2015.
The ZIPAR Executive Director has since advised that government considers revising this target in favor of a more realistic one.
Dr. Kabaso was speaking this morning when she submitted ZIPAR’s analysis of the announced 2016 national budget before the Parliamentary Expanded Committee on Estimates Chaired by Bweengwa Member of Parliament Highvie Hamududu.