CTPD commends social protection, agriculture 2021 budget allocation

HELEN ZULU writes@SunZambianTHE Centre for Trade Policy and Development (CTPD) has commended Government for increasing the budgetary allocations towards social protection and agriculture, particularly the Farmer Input Support Programme (FISP) in nominal terms in the 2021 national budget.CTPD senior researcher Dr Simon Manda said from a broader angle, agriculture and related social protection received a fair share of the 2021 budget, as key sectors for building local resilience and for safeguarding livelihoods and protect the vulnerable.He said the government is right, therefore, to place at the centrality of the budget agriculture and social protection.Speaking during the plenary discussion- CTPD 2021 national budget analysis in Lusaka, Dr. Manda said these nominal gains are however eroded by rising inflation.He said therefore, the need to bring inflation to low and stable levels cannot be over-emphasized.Dr. Manda said in this regard, Government should prioritize stabilization of the exchange rate to reduce the pass-through to inflation.Meanwhile, Dr. Manda said the strategic grain reserve agenda remains controversial in the face of private sector engagement in agriculture and empowerment as well as shrinking fiscal space.He noted that the allocation has somewhat reduced to K517,500,000 from K660,000,000 in 2020 but remains significant in the face of historical trends as well as against wider government competing needs.Dr. Manda said more broadly, without addressing issues of targeting and distribution, efforts in the agricultural sector will not yield significant results.He said sector specific incentives are needed to promote production and marketing at small-scale level as opposed to large-scale level.Dr. Manda further said economic recovery should not be seen in the context aggregate growth only but also stimulation of economic activities at local level.He said moreover, the budget continues to advance a maize-centric policy focus which constrains efforts on diversification.Dr. Manda said, however, that the Public Service Pension Fund has not received a fair share, yet COVID-19 and related elements will more likely affect this group of vulnerable Zambians.He said the sector has been allocated K1,067,955,725, not a significant rise from previous allocations.Dr. Manda said CTPD was of the considered view that the government reconsiders the plight of the vulnerable, the majority whom might face public health impacts of COVID-19.He said this raises the need for the Government to consider enhanced support to this sector. The Sun