JCTR urges Govt to reduce on borrowing

The Jesuit Centre for Theological Reflection (JCTR) has strongly urged the government to reduce on borrowing and focus on a budget deficit reduction plan which will increase income levels and reduce interest rates on government debt.

The JCTR notes that the rate at which the country’s debt is accumulating is very alarming as it is slowly drowning the country into a serious external and domestic debt crisis if not urgently addressed.

It further notes that even with the increased debt levels which stand at US$7.1 billion external debt and K38.6 billion domestic debt government has not put up stringent fiscal discipline measures.

The centre is concerned about the country’s debt levels and how government is going to pay back these huge sums of money.

It has since strongly urged government to come up with immediate fiscal measures that will limit spending and ensure that it spends according to what is budgeted for and not otherwise.

The JCTR notes that most private investments are suffering due to high interest rates which have reduced money circulation within the economy, and that this may lead to increased levels of unemployment and poverty in the country.

It has further urged the government to create a diversified and resilient economy for sustained growth and social economic development and to actualize the five pillars of the Seventh National Development Plan.

Meanwhile the June 2017 JCTR Basic Needs Basket for a family of five living in Lusaka increased by K5.83 from K4,952.69 in May to K4,958.52 in June.

The increase in the Basic Needs Basket is attributed to the increase in prices of some food items such as cooking oil, bread, sugar and tea.

Non-food items such as charcoal also increased from k135 per 90kg bag to k158. However prices for some food items reduced these include mealie which reduced from K90 per 25kg bag to K80 per 25kg bag, kapeta, dry fish and onion.