Subsidies removals saves govt K1 billion

Thu, 25 Jan 2018 17:51:15 +0000

By MAILESI BANDA

 GOVERNMENT saved K1 billion in 2017 after the removal of subsidies in the energy and agriculture sector.

Finance Minister Felix Mutati announced that in the past year Government has been able to save the money due to the drastic step taken last year.

Mr. Mutati was speaking during the cooperating partners meeting on the economic performance and 2018 outlook held in Lusaka yesterday.

The minister described 2017 as a positive year economically, stating that tax revenues in the year under review registered a 4 percent increase above budget.

He said the expenditure values were below target at about 7 percent.

“As Government we have continued to value the policy guidance and support we get from you our cooperating partners”.

“The year 2017 was anchored on fiscal fitness and this supported our tax revenue which registered a 4 percent increase while the expenditure values where below target,” said Mr Mutati.

And the minister said Government had in 2017 focused more on the dismantling of debts.

Mr. Mutati said these efforts put into the dismantling of debts has helped Government reduce it’s debt portfolio from Over 19 billion in 2016 to less that 10 billion by the end of 2017.

He explained that Government’s debt strategy is anchored on sustainability and ability to pay and reduce debt.

Meawhile the recently appointed minister of National Planning, Alexander Chiteme said Government has a total of 2,459 projects still under construction adding that his ministry has decided not to take on any further projects until the running ones are done.

Mr.Chiteme said among the challenges contractors faced was the  limited number of workers  tasked to complete the projects.

The two minister later held a closed door meeting with cooperating partners.

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