‘Outline roadmap for 8% inflation target’

BUUMBA CHIMBULU writes@SunZambianGOVERNMENT should urgently provide a clear road map outlining the wide range of policy proposals that will be used to reduce inflation to desired target of six to eight percent.For the last few months, inflation has been in double digits, with last month inflation being recorded at 15.7 per cent from 15.5 percent […]

‘Outline roadmap for 8% inflation target’
BUUMBA CHIMBULU writes@SunZambianGOVERNMENT should urgently provide a clear road map outlining the wide range of policy proposals that will be used to reduce inflation to desired target of six to eight percent.For the last few months, inflation has been in double digits, with last month inflation being recorded at 15.7 per cent from 15.5 percent in August 2020.Jesuits Center for Theological Reflection (JCTR) Social and Economic Development Manager, Chama Mundia, said it was important for Government to provide a clear road map on how they plan to reduce inflation to the desired targets.“We urge Government to ensure the realisation of increased energy generation beyond mere promises.“The JCTR further reiterates the need for rapid interventions that speak towards the agenda of decent employment creation in line with Seventh National Development Plan aspirations,” Ms Mundia said in a statement yesterday.She said as much as JCTR appreciated various efforts particularly in the 2021 budget targeted towards improving the livelihoods, the reality of living a dignified life was still far from attainable.“The JCTR, however, cautions that the reality of living a dignified life is still far from attainable given the high cost of living whose cost level is significantly above household average incomes.“The Centre is also cautious that Zambia’s debt is compounding Government’s fiscal space to effectively respond to providing the much needed sustainability towards improved livelihoods beyond 2020,” Ms Mundia said.The budgeted external debt obligations for 2021 have been estimated at K27.7 billion.Additionally, 44.9 percent of the budget will be financed through borrowing both from domestic and external sources.Ms Mundia said the overall suggested interventions to stimulate economic recovery and build resilience to safeguard livelihoods and protect the vulnerable were somewhat contradictory as far as addressing key macro-economic issues.She said the scenario of a widening fiscal deficit, inflation that had been on the rise in recent times, Kwacha, constrained domestic resource mobilisation and the weakened stimulation of the domestic economy presented a gloomy picture.“More so, the promises of increased energy generation have not yielded significant reduction in load shedding.“High fuel costs and grave hours of load shedding have continued to disrupt businesses and impact negatively on costs and levels of production and consequently economic growth,” Ms Mundia said. The Sun