Business

Budget puts Zambia on recovery path

ZAMBIA Institute for Policy Analysis and Research (ZIPAR) executive director Pamela Nakamba (left),United Nation representative Noala Skinner (centre) and Ministry of National Development Planning Permanent Secretary Chola Chabala (right) during the 2020 budget analysis breakfast meeting in Lusaka recently. PICTURE: COLLINS PHIRI

NANCY MWAPE, Lusaka
THE 2020 national budget has been prepared within the context of key challenges of limited fiscal space and the impact of climate change that has had devastating effects on productive sectors of the economy.
Zambia’s economic growth is this year projected to slow down to two percent from 3.7 percent registered in 2018, reflecting a decline in copper output due to protracted fall in metal prices on the international market.
Likewise, the economy this year saw poor agriculture production due to severe 2018/2019 drought that has constrained hydropower electricity generation and heightened macro-fiscal challenges.
Despite the difficult macroeconomic conditions, challenging fiscal and debt situation, many have welcomed the Government’s 2020 budget which they say holds promise to stimulate the domestic economy and position Zambia for growth.
As dust settles from the bombshell of reintroducing sales tax in the 2019 budget, Zambia Institute for Policy Analysis and Research (ZIPAR) together with stakeholders have welcomed the maintaining of Value Added Tax (VAT).
ZIPAR researcher Shebo Nalishebo praised Government for abandoning sales tax, which threatened the private sector in uncertainty and delayed investments, in favour of reforms to Value Added Tax (VAT) in line with various stakeholder’s recommendations.
Mr Nalishebo says it is important for Government reforms to be carried out in an orderly and CLICK TO READ MORE

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