Budget low on growth ambition – Dr Musumali

By NATION REPORTER

WHILE there is much talk about the government’s Grow Zambia Agenda, there is lower ambition on economic growth in the 2027 national budget, Socialist Party general secretary Dr Cosmas Musumali has said.

Dr Musumali said the K284.8 billion budget presented by Finance and National Planning Minister Dr Situmbeko Musokotwane last Friday would place a heavier burden on ordinary Zambians through increased taxes and charges.

He said the government’s 2027 growth target of 4.9 percent was not ambitious enough given the emphasis placed on the Grow Zambia Agenda.

“Lower ambition on growth. The target is only 4.9 percent, despite talk of ‘Grow Zambia’,” Dr Musumali said in his analysis of the budget.

He said the budget was largely dependent on increased revenue collection, with new tax measures expected to raise K10.8 billion.

Dr Musumali said debt servicing remained a major concern, with K67.6 billion allocated to debt service, which was more than twice the allocation to health.

He said the 2026 fiscal deficit had reached 5.9 percent of Gross Domestic Product (GDP), against a target of 2.1 percent, while Government was targeting a deficit of three percent in 2027.

Dr Musumali also criticised what he described as inconsistencies between the minister’s budget speech and its annexes.

“The speech and its own annex do not agree in several places,” he said, citing differences in the top Pay As You Earn (PAYE) threshold and duty on ceramic tiles.

He said Parliament should demand greater clarity from the Ministry of Finance and National Planning because the budget involved public resources.

“This is our money,” Dr Musumali said.

He said ordinary Zambians should expect higher prices for sugar, cooking oil, drinks and other basic goods following proposed tax measures.

Dr Musumali said the proposed increase in VAT to 16.5 percent, among other measures, would put additional pressure on consumers.

“Expect higher prices for sugar, cooking oil, drinks and everyday goods. Expect to pay more every time you send money by phone,” he said.

He also criticised the absence of PAYE (Pay As you Earn) relief for workers despite rising living costs.

Dr Musumali said farmers would also face increased pressure from higher taxes on farming and agro-processing, while changes to the Farmer Input Support Programme could expose farmers to greater risks.

However, he noted some measures in the budget, including increased social cash transfers and the retention of Constituency Development Fund allocations at K40 million per constituency.

Ends.