Stop Issuing Misleading Statements, Says Kandeta

THE Ministry of Finance has urged some former Cabinet ministers against issuing irresponsible statements on the fiscal position of the country.
Ministry public relations officer Chileshe Kandeta said in a statement yesterday that there has been a “spate of dramatic statements about the fiscal position of Government, worryingly and significantly, from some former ministers”.
He said the treasury is concerned the statements, which are predicated on serious distortions of facts, have capacity to mislead the public and create unnecessary despondence.
“In the budget for fiscal year 2013, the size of the deficit and how it would be financed was indicated, debated by members of Parliament and endorsed. In all years, because of the demands of development, there have been deficits and there will be even bigger deficits as the development agenda unfolds,” Mr Kandeta said.
He said it is important for the country to reduce the imbalance between outlays on recurrent or consumption component of the budget and growth-promoting projects because “only in this way can we accelerate development, create more jobs and increase the nation’s stock of wealth”.
Mr Kandeta noted that most big economies in the world are today experiencing deficits, which are sizeable proportions of their gross domestic product.
He said Zambia’s deficit is currently about five percent of GDP and “our thrust is to keep the deficits at that level or at least not significantly much above that level to avoid running into debt service difficulties”.
He said it is important to know that the world economy has decelerated and the immediate prospects for higher growth rates are not very promising.
Mr Kandeta said all countries, including Zambia, are subject to externally-induced shocks.
“One way to circumvent these shocks is to quicken development in sectors with huge potential for growth and short gestation. Agriculture and energy sectors stand out and hence the enhanced investments in these sectors,” he said.
He also said there is ample and adequate competence and skills in the treasury to manage short-term crises and that the country should understand that there are no insurmountable problems.
Even more soothing, Mr Kandeta said, is the fact that the international financial community has confidence in Zambia because of the country’s policy consistency and predictability.
“The treasury wishes to appeal to citizens, especially those who have held responsibilities in Government, to desist from dubious accolades and irresponsible limelight which can engender alarm and erosion of confidence in our peaceful country. We all have individual and collective responsibility and duty to maintain a favourable image of our country,” he said.