Prioritise low-income consumers, Govt urged

LINDA SOKO TEMBO writes  GOVERNMENT should prioritise low-income consumers as it considers to re-programme the 2020 national budget due to the impact of Covid-19, says Consumer Unity and Trust Society (CUTS). CUTS Director, Chenai Mukumba, said the society was concerned that the pandemic had its most negative impact on consumers who had been mostly hard hit by rising […]

Prioritise low-income consumers, Govt urged
LINDA SOKO TEMBO writes  GOVERNMENT should prioritise low-income consumers as it considers to re-programme the 2020 national budget due to the impact of Covid-19, says Consumer Unity and Trust Society (CUTS). CUTS Director, Chenai Mukumba, said the society was concerned that the pandemic had its most negative impact on consumers who had been mostly hard hit by rising inflation, the depreciation of the Kwacha as well as job losses. In a statement, Ms Mukumba said the cumulative impact of the issues was likely to see an increase in poverty and as such, it was expected that the demand for social services such as health, education and social protection would see an increase. Ms Mukumba said for the economy to navigate out of the situation, Government should undertake a dual approach. She said it was therefore imperative that the social sector spending was not only ring-fenced but also increased to cushion the marginalised that were most hard hit. “It is crucial that the government provide support to the SME sector and ensure that it is accessible. The conditions on the Covid-19 K10 billion stimulus package were too stringent for the average SME thereby contributing to its slow uptake.  “SMEs ought to be appropriately supported as they are the backbone of the economy contributing significantly to job creation and livelihoods in Zambia,” she said.  Ms Mukumba said the national budget was severely compromised as the cumulative spending on debt interest payments and emoluments left less than 10 percent of domestic revenues available for discretionary spending.  She said that this saw significant cuts in social sector spending and that the secondary socio-economic impact of the Covid-19 pandemic in Zambia had further exacerbated the availability of resources for discretionary spending. Ms Mukumba said that Zambia’s public debt levels remained at the center of the country’s increasing tight fiscal position.  “The downgrading of Zambia’s credit rating by international rating agencies such as Fitch to one of the lowest in the world a few months ago was reflective of debt obligations become increasingly less likely to be met.  “Last week, the news of Zambia acquiring the services of Lazard Freres at US$5 million to assist it in its effort to address Zambia’s debt situation indicated a significant turning point in Zambia’s debt discussions,” she said.  Ms Mukumba said that in light of the impact that the growing debt burden and Covid-19 were having on consumers they urged Government that even in reprogramming the 2020 national budget to support the most in need.  She said Government should exercise high levels of prudency and accountability for the limited resources that were available to them. The Sun