REMOVAL OF SUBSIDIES ON ENERGY AND AGRICULTURE PROPOSED IN IMF AGREEMENT TO AFFECT FIXED INCOME EARNERS
REMOVAL OF SUBSIDIES ON ENERGY AND AGRICULTURE PROPOSED IN IMF AGREEMENT TO AFFECT FIXED INCOME EARNERS
By Chileshe Mwango
Economist Noel Kabwita has observed that the removal of subsidies on energy and agriculture proposed in the International Monetary Fund–IMF- agreement with Zambia will mainly affect fixed income earners especially those under the low income bracket.
Mr. Kabwita tells phoenix news that this is because there will be an increase in the prices of goods and services which will see even those that would have been cushioned by the benefits of reduced inflation and appreciation of the kwacha being affected.
However, Mr Kabwita says in the medium to long term, the situation will stabilize although this will only be possible when serious economic management fundamentals are executed.
Mr Kabwita has also urged the government take debt servicing seriously by exercise fiscal disciple and ensure government expenditure is within manageable levels.
Meanwhile, all nations are families foundation is calling for the prudent use of the K1.3 billion approved by the IMF for Zambia.
The Organisation has suggested that government takes advantage of this fiscal headroom to ensure there is provision of accommodation for newly deployed teachers, health workers.
Organisation Director Finance and Administration, Emmanuel Kangwa, says Zambians must also not be misled into believing that the IMF will bring unfavorable conditions arguing that the institution has been there to provide fiscal and technical support to member countries such as Zambia for the past 50 years.
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