Dear Editor,
WHILE we rarely comment on misguided statements by UPND President Hakainde Hichilema as they are devoid of reality, his recent assertions regarding increasing the salaries for civil servants cannot go without comment.
In the wake of debt swap, Mr Hichilema promised to immediately effect over 25 percent salary increment for public sector workers without explaining the methodology for that miracle money.
Firstly, Mr Hichilema is among political leaders who stood on the podium with a promise to reduce public expenditure by trimming financial resources spent on emoluments. He has also promised to reduce the tax burden for persons who are in gainful employment.
A simple arithmetic test is that under the Hichilema-led government, there could be reduced prospects of revenue growth for the treasury as it will be bent at subsidising nearly all sectors of the economy.
Therefore his pronouncements of increasing the salaries is not consistent with reducing public expenditure.
It should also be noted that the governance process is an inclusive process and the President is not the alpha and omega who can unilaterally decide to increase personal emoluments without regard to other stakeholders.
It should be noted that Mr Hichilema is a proponent of the International Monetary Fund bailout package whose condition precedent is that Government tightens its fiscal policy to the detriment of its citizens.
Mr Hichilema should objectively appreciate the improvements to the conditions of service besides increasing their salaries. For instance in 2013 there was a collective agreement which led to the introduction of health personnel shift allowance to the tune of 15 percent of the basic salaries for nurses and night duty allowance pegged at seven percent of the basic salary.
The promised salary increment is not consistent with the promise to stabilise the exchange rate in an event Mr Hichilema assumed the office of President.
It raises questions on whether the promises by the opposition are tenable considering these glaring inconsistencies on the economy. One need not to be an economic pundit to appreciate that the sudden increase of salary will lead to inflationary pressures thereby increasing the cost of living.
Zambians should appreciate the recent debt swap which was announced by cabinet as a Covid package for public sector workers who were entrapped in the perpetual debt cycle. The initiative has rescued the indebted civil servants from the jaws of the financial institutions with the high interest rates.
The debt swap which has assigned the debt to the Public Microfinance Company will give the civil servants a breathing space thereby putting more money in their pockets.
MARVIN CHANDA MBERI,
Lusaka.
