STATEMENT FOR IMMEDIATE PRESS RELEASE
2018 BUDGET ALTERNATIVES AND ANALYSIS
We the Movement for National Transformation MNT, percieve the recently announced budget by the Hon. Minister of Finance as being more about public perception, than truth, and transformative fiscal practicalities. It is statistical and still “handbag ” macro-economics. This is so, due to incapacity, inadequacy, inconsistencies, and incompetence. It lacks novelty and transformative leadership approach. We substantiate this claim because of the following:
1. It’s a deficit budget with limited resources to finance the proposed expenditure therein. The mistake in it is that, to mobilise revenue options government has decided to increase taxes, rather than reduce expenditure by growing the macro-economic factors of production. PF campaigned on reducing taxes, but they lied to the Zambian people from 2011. Whereas, taxes have increased, the earning capacity of Zambians has not to justify such heavy tax burdens. This is causing stress in the quality of life which is declining to qualify the economic growth trajectory. The middle class is being pushed into poverty by being heavily taxed.
2. The budget has protected multi -national corporations with foreign direct investments, FDI and capital by not taxing them as they should. Revenue flight by these entities is going to exacerbate the transfered burden to nationals especially the middle class.
3. The budget is more about public perception than truth. The Minister said everything smooth that Zambians must hear except the truth about certain proposed measures. This budget is blind to projecting a practical human face and leveraging the poor as a priority in the short, medium term, and further may not project the growth needed beyond 5 % GDP in the long term.
4. The budget fails to appreciate the human development index as a priority factor, but is more focused on projects at the expenses of human development itself for improved quality of life. Zambians have not been given priority but projects for government to say we are working.
5. The budget is outward looking than inward looking to create internal macro-economic capacity and sustainable growth.
6. The budget may not meet the pillars embedded in the SNDP because of transactional leadership approaches to meet the required economic stabilization monetary policy which must be aligned to government’s fiscal consolidation measures which may compromise inflation especially growth objectives.
7. The budget is weakened by a debt- driven policy of resource Mobilisation strategy of PF -led government since 2011 Which heavily focuses on loans, and debt favoring multinational corporations.
Conclusively, MNT has a different approach that in 2021 and beyond will focus on dominant growth beyond 6% by creating domestic economic growth capacity, internal looking fiscal policies, Development of start-ups and SMEs in the private and public sectors to satisfy our aggressive industrialisation focus and diversification of the multisectoral economic growth approaches of first world transformative government. This is going to be done by our fiscal discipline, and macroeconomic transformative strategic plan, which we shall unveil at a later date for equitable development of all Zambians.
Issued by :
Daniel Mvula Shimunza
MNT founding President Plot 118 Great East Road opposite Munali Secondary School, next to Chainama Hotel.