EAZ Warns of Economic Setback as Debt Restructuring and Wage Bill Take Precedence.
The Economic Association of Zambia (EAZ) has raised alarms about the government’s current spending priorities, particularly its heavy focus on debt restructuring and the public service wage bill. According to EAZ Secretary, Emmanuel Zulu, these allocations are hindering the growth of key economic sectors that are crucial to revitalizing the country’s struggling economy.
The Ministry of Finance recently disclosed that out of the K23.1 billion earmarked for public service delivery, K3.9 billion was allocated to salaries, while a significant K12.7 billion was directed towards servicing Zambia’s mounting debt. This has sparked concern among economic experts, including Zulu, who argued that such a large portion of the country’s financial resources should have been directed towards enhancing sectors that can stimulate growth and sustainability.
In a statement issued on Monday, Zulu emphasized that while debt reduction and job creation are important goals, it is critical for the government to strike a balance. “While government aims to create jobs and also dismantle debt, it must carefully balance with fiscal consolidation to ensure service delivery is not compromised,” he said.
Zulu underscored the importance of investing in the economy, pointing out that a strong, resilient economic base is necessary for the sustainable management of Zambia’s debts. Without strategic investments in key sectors such as agriculture, industry, and infrastructure, Zambia risks stalling its economic recovery and growth.
The EAZ Secretary expressed some optimism over the government’s attempts to diversify its revenue base, highlighting this as a positive step in reducing the economy’s vulnerability to external shocks. However, he stressed that more needs to be done to ensure that vital sectors driving economic development receive adequate attention and investment.
“Investing in sectors that drive economic growth will not only create jobs but will provide the foundation needed to sustainably manage Zambia’s debt and improve the overall economy,” Zulu added.
Despite this warning, there have been efforts by the government to diversify revenue sources and reduce reliance on external debt. The government’s recent fiscal policies and focus on increasing non-tax revenues are seen as essential for cushioning the private sector and minimizing economic risks. However, the EAZ remains concerned that without a careful reassessment of budget priorities, Zambia’s economic potential may continue to be stifled.
In conclusion, Zambia’s road to economic recovery remains fraught with challenges, and while debt reduction and wage payments are important, the focus must shift towards enhancing economic sectors that contribute to long-term growth. EAZ calls on the government to ensure that its fiscal strategy aligns with the broader goal of achieving sustainable and inclusive development.
Keywords: Zambia, Economic Association of Zambia, Emmanuel Zulu, debt restructuring, wage bill, economic growth, public service wage bill, Ministry of Finance, K23.1 billion, fiscal consolidation, Zambia economy, revenue base, private sector, investment, key economic sectors, Zambia news.
 has raised alarms about the government’s current spending priorities, particularly its heavy focus on debt restructuring and the public service wage bill. According to EAZ Secretary, Emmanuel Zulu, these allocations are hindering the growth of key economic sectors that are crucial to revitalizing the country’s struggling economy.The Ministry of Finance recently disclosed that out of the K23.1 billion earmarked for public service delivery, K3.9 billion was allocated to salaries, while a significant K12.7 billion was directed towards servicing Zambia’s mounting debt. This has sparked concern among economic experts, including Zulu, who argued that such a large portion of the country’s financial resources should have been directed towards enhancing sectors that can stimulate growth and sustainability.){kind=link}