DPP says sluggish economy will fail K2.8 trillion budget implementation

Main opposition Democratic Progressive Party (DPP) says government will find it difficult to implement the just passed K2.8 trillion national budget due to the prevailing economic hardships and uncertainties the economy is facing.

DPP spokesperson of financial matters in Parliament described the national budget which parliamentarians approved on Friday as a weaker one.

But minister of Finance Sosten Gwengwe, minister of finance expressed expressed optimism that the budget will be implemented.

‘’We have done a big task today and every budget is measured by the extent to which it is implemented.

“That is why we as the government has planned to extensively implement this budget’’ said Gwengwe in parliament.

However, Mwanamvekha expressed doubts that the budget will be implemented, citing the struggling economy as the reason.

One of the highlights of the national budget was the scrapping off of a 16.5 % VAT on cooking oil.

In the budget, Gwengwe said government anticipates a gross domestic product (GDP) growth of 4.1 percent and 4.0 percent in 2023, average inflation of 9.1 percent, a policy rate of 12.0 percent, and tax refunds of 3.0 percent of total tax revenue collection.

The minister also said the government will aim to entrench macro-economic stability, enhance the country’s resilience to external shocks, and fast-track economic recovery during the post-Covid-19 pandemic period.