WHAT ARE THE ALTERNATIVES TO GOVT BORROWING ?
Section 8 of the Public Debt Management Act, No 15 of 2022 demands that an Annual Borrowing Plan ( ABP) be submitted to parliament for approval.
In 2023, government requested to borrow as follows;
– $1.4 billion externally
– K 15.5 billion internally
This year 2024, government planned to borrow;
– K 16.33 billion domestically
– K 17 billion externally.
In July this year, the Minister of finance requested EXTRA borrowing as follows ;
– K 6 billion domestically
– $ 490 million externally)
Today parliament will be requested to approve $ 108 million borrowing under new loan terms to support the 2024 budget.
In 2025, government intends to borrow the following amounts;
– K 15.4 billion domestically
– K 19.3 billion externally
My thoughts are around alternative ways government can utilize in the medium to long term to raise money locally to minimize borrowing annually to finance national budgets.
You are at liberty to share your thoughts on this thread. I have in mind the following strategies;
– Tax reforms to broaden the tax base, improving tax compliance and enhancing collection efficiency
– Diversifying the economy to raise more revenue from other sectors like agriculture, tourism and manufacturing
Christopher Kang’ombe
Kamfinsa MP
17.12.2024
