2027 budget favours lenders, investors over poor Zambians -- Dr M'membe

By MUBITA KATETE

SOCIALIST Party president Dr Fred M'membe has criticised the 2027 national budget, arguing that it prioritises debt repayments and private investors at the expense of ordinary Zambians.

Dr M'membe says the K284.8 billion budget presented by Finance and National Planning Minister Situmbeko Musokotwane placed a heavy financial burden on citizens through increased taxes, while allocating substantial resources towards debt servicing.

He said K67.6 billion of the budget had been allocated to debt repayments, an amount which was more than double the K30.3 billion allocated to health and significantly higher than the K38.2 billion provided for education.

"One kwacha in every four goes to debt. K67.6 billion will be paid to lenders, banks and bondholders. That is more than twice what we will spend on health and far more than education," Dr M'membe said.

He argued that the country's economic stability was coming at a cost to ordinary citizens, who would continue to bear the burden of increased taxes.

Dr M'membe also criticised the proposed increase in Value Added Tax (VAT) to 16.5 percent, alongside higher mobile money transaction levies across all bands.

He said the measures would disproportionately affect low-income earners, particularly marketeers and families relying on mobile money to send and receive financial support.

"These taxes do not ask whether you are rich or poor," he said.

Dr M'membe also expressed concern over the proposed introduction of a K1 per kilogramme sugar tax and increases in passport and civil registration fees.

On agriculture, he questioned the proposed transformation of the Farmer Input Support Programme (FISP) into a loan scheme, saying the arrangement could worsen the financial difficulties faced by small-scale farmers.

"Our farmers will start the season in debt. FISP is to become a loan scheme. Peasant farmers who already struggle to break even will now owe the State before they plant," he said.

Dr M'membe described the increase in Social Cash Transfer payments by K50 to K450 per month as inadequate, arguing that it translated into only K15 per day for a household.

However, Dr M'membe noted the proposed introduction of tax on dividends paid by mining companies, saying it was a positive but overdue measure.

He said mining companies had previously not been paying tax on dividends despite benefiting from record copper prices.

On investment and economic growth, Dr M'membe questioned the government's emphasis on private sector-led development and foreign investment, including plans to make prime land along railway corridors available to large investors and partially sell State-owned companies.

"We have heard this before," he said.

Dr M'membe said the fundamental test of any national budget should be whether it addressed the needs of ordinary citizens.

"The question for any budget is simple: who does it serve? On first reading, this one serves the lenders and the investors first, and ordinary Zambians last," he said.

Ends.