By ROGERS KALERO
SECRETARY to the Treasury Felix Nkulukusa has challenged commercial banks to explain why interest rates have continued to remain high despite government having stopped from borrowing from the local market.
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And Mr Nkulukusa has said the overall objective of the 2024 budget is to create a macro-economic environment that is ready to do business and broaden the tax base for revenue collection for investment in various sectors such as agriculture, health and education.
Mr Nkulukusa has expressed concern that despite the government moving away from borrowing from the local market, interest rates had continued to remain high
He has since challenged commercial banks to explain why interest’s rates have remained high despite the government not borrowing from the local markets
“Since this discussion has been hosted by a commercial bank, I want to challenge the banks to explain why interest rates have remained high. Government is not borrowing from the local market to give chance to the private sector, but interests rates have remained high,’’ he said
And Mr Nkulukusa has said that apart from creating macro-economic environment ready for business, the 2024 budget is also seeking to improve fiscal sustainability, reduce debt service burdens and rebuild Zambia’s credit worthiness in a bid to stimulate economic growth
Mr Nkulukusa was speaking in Kitwe during the 2024 budget review discussion which was hosted by First National Bank (FNB) and attended by members of the Kitwe and District Chamber of Commerce and Industry (KDCCI)
“We want to cushion the external shocks and set the stage for economic growth. We need to reduce on borrowing and reduce on debt servicing burdens. We also want to prioritise investment for the private sectors to sustain economic growth.”
“In the 2024 budget, we also want provide an investment friendly-environment and increase private sector participation. The general objective of the 2024 budget is to create macro-economic environment that is ready to do business,’’ Mr Nkulukusa said
And speaking earlier, FNB Zambia Chief Financial Officer Kampamba Mulenga said FNB decided to host the Zambia 2024 Post Budget discussion in Kitwe because the bank has a lot of customers on the Copperbelt
Mr Mulenga said FNB holds Kitwe close to its heart and so this was why in the recent past, it has been holding most of its events in Kitwe
“We decided to host this budget discussion in Kitwe because we have most of our customers in Kitwe. We thought we should discuss issues of taxing and also connect our customers on a number of issues,’’ Mr Mulenga said
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