Subsidies removal paying off -Mutati

Mon, 12 Dec 2016 12:29:30 +0000

By Mailesi Banda

THE removal of subsidies on fuel has started paying off as more than K1.6 billion has been paid to contractors across the country from the money saved after the removal of subsides on fuel, Finance Minister Felix Mutati has announced.

Mr Mutati said while the decision to remove subsidies might have seemed cruel, Government had managed to save substantial amounts of money which was now being channeled to sectors such as infrastructure projects.

Speaking at a post-budget discussion in Mongu on Saturday, Mr Mutati said that for government to save more money, the Ministry of Finance was formulating ways to regulate spending in institutions and agencies.

He said the proposed increase in electricity tariffs was meant to stabilise the energy sector and attract investment as the current electricity tariffs were not helping the energy sector grow at the same rate the country was economically expanding.

“We have been able to raise enough money which is now being channeled to developmental projects that will benefit all Zambians. We have since paid more than K1.6 billion to contractors from the money saved from the removal of subsidies on fuel. As a ministry, we are coming up with a common data base for the purchase of goods and services to avoid abuse of national resources,” Mr Mutati said.

He explained that in order to strengthen local investors, discussions were ongoing on how commercial banks could reduce the interest rates on borrowing so that as many Zambians as possible could have access to loan facilities.

He further disclosed that the social sector had been a challenge in remitting taxes to Government and that his Ministry was looking at the best ways of collecting taxes from the social sector.

And Western Province minister Nathaniel Mubukwanu said elections were over and the time to continue politicking in the country was gone, and it was important for the people of the region to contribute to national development.

Mr Mubukwanu said the people of Western Province should work with the PF government because its leadership was dedicated and resolved to take development to every part of the country.

Meanwhile, Western Chamber of Commerce and Industry, Chairman Charles Mutemwa advised Government against embarking on projects that were not budgeted for because that was what led to budget deficits.