Sun, 01 Oct 2017 10:08:33 +0000
By OSCAR MALIPENGA
TWENTY-TWO percent increment in the local government equalisation fund in 2018 budget is not enough, Local Government Association of Zambia (LGAZ) President Christopher Kang’ombe ha said.
Meanwhile, the Local Government Association of Zambia has nodded the investment decision by NAPSA in the road sector announced in the 2018 National Budget speech on Friday.
Reacting to the 2018 budget speech, Mr Kang’ombe has appealed to the minister of Finance Felix Mutati and his Local Government counterpart Vincent Mwale to review the figure upwards as provided for in the Constitution.
“The Local Government Association of Zambia did submit in response to the MTEF green paper document that the proposed 22% increment in the equalisation fund to 109 councils is not enough”.
Mr Kang’ombe said the association argued in their submission to government that service delivery at local government level through councils could only be achieved with adequate fiscal decentralisation commencing next year 2018.
He explained that 22 percent increment brings the figure to K 1.1 billion as equalisation fund to 109 councils for the whole year, adding that it was not enough in the 2018 budget.
Mr Kang’ombe however said the association would continue engaging the government on the matter to ensure the proposed 22 percent was not implemented but focus on a substantial figure as per constitutional requirement in line with the decentralisation policy.
Meanwhile, Mr Kang’ombe has nodded the investment decision by NAPSA in the road sector announced in the 2018 National Budget.
Mr Kang’ombe said the model was such that once the road works were completed and toll plazas constructed, NAPSA would recover its investment plus make profit through revenue collected through toll fees.
“The benefits to the districts covered by these road works are great and we hope the contractors engaged by government can expedite the process,” he said.
Mr Kang’ombe urged other pension funds to consider diversifying their investment portifolios.
“It is in this regard that LGAZ will be engaging NAPSA on possible investment opportunities for partnerships with councils in Zambia that require finance for profitable district projects,” he said.
