Finance Minister Felix Mutati says government acknowledges and accepts that the levels of the country’s debt are approaching unsustainability levels.
Mr. Mutati says this is the more reason why the government is slowing down on borrowing in order to reach sustainability.
He says Zambia’s external debt currently stands at 32% of Gross Domestic Product (GDP), while internal debt is at 18.4 percent of GDP, adding up to 50.4% of GDP.
The Minister adds that the stress level stands at 56 percent of GDP.
He has noted the need to ensure budget implementation is perfect in order to reduce on some of the economic challenges in the country.
Mr Mutati has also noted with dismay that according to the latest Auditor General’s report, 50 percent of the public funds misused are from the Ministry of General Education which is key to national development.
He has since assured the nation that the suspension of six accountants, two from his ministry and four from the Ministry of General Education, is the beginning in dealing with erring officers.
Mr. Mutati said this in Lusaka during the official launch of the Public Expenditure and Financial Accountability (PEFA) Report.
And representing the cooperating partners, Germany Embassy Head of Development Cooperation Dr. Frank Hofmann says cooperating partners will continue to partner with the Zambian government in trying to sort out some of the social and economic challenges.
Dr. Hofmann has also encouraged the government to continue engaging with partners such as the International Monetary Fund (IMF) in addressing some of the economic challenges.