Q FM Africa's Modern Radio
Patriots for Economic Progress (PeP) president Sean Tembo has hailed as progressive government’s decision to allocate K2.3 billion towards dismantling domestic arrears in the 2020 national budget.
Mr Tembo says his party is however, of the view that given that government owes about K18 billion in domestic arrears, the allocation should have been at least K7 billion.
He however, states that the K2.3 billion allocated to liquidate domestic arrears is a step in the right direction as it will help in improving liquidity in the economy.
In an interview with QTV News, Mr. Tembo has also commended government for its decision to cut down domestic borrowing to 1.1 percent of the GDP describing the move as positive.
He adds that the decision to abandon the Goods and Sales Tax by maintaining Value Added Tax (VAT) is equally progressive.
Mr Tembo however, states that one of the negative aspects his party has identified is government’s decision to fund 33 percent of the 2020 national budget through borrowing.