Maravi

JCTR notes rise in living cost despite Magande's pronouncements

JCTR notes rise in living cost despite Magande's pronouncements
By Kabanda Chulu
Sunday February 10, 2008 [05:00]

THE JCTR has observed that the cost of basic needs for an average family of six has increased, despite finance minister Ng’andu Magande’s pronouncement in the 2008 budget that urban poverty has reduced. The JCTR has also challenged Magande to explain the source of such significant reduction in urban poverty.

Releasing the findings of its monthly basic needs basket, the Jesuit Centre for Theological Reflection (JCTR) stated that average cost of food in Lusaka was recorded at K596,000 for the month of January thus representing an increase of K26, 500 from the average cost of K569,500 recorded in December 2007.

The JCTR stated that this increment was mainly coming from upward cost adjustment for kapenta, meat, tomato, onion and cooking oil.
“Obviously this increase raises some concern, especially if the trend of food increment continues, because it will erode the little relief that was to come from the tax exemption threshold of K600,000 recently announced by Magande.

Moreover, the current national context of floods will add to an upward trend in food costs due to the anticipated reduced food production,” it stated. “ And looking at people’s income capabilities in accessing basic needs, Zambian households will continue to face the challenge of meeting their needs of food in addition to other essential basic needs which together for Lusaka currently cost an average of K1,835,300 from K1,636,900 recorded in December 2007.”

The JCTR stated that measures of poverty were not only predicted on income deprivation (lack of it), but extend to an array of other considerations.

“Recognising the different frameworks, approaches or methodologies of measuring poverty, it will have been helpful for government to also provide the source or cause of the recently announced reduced urban poverty with a decline from 53 per cent to 34 per cent. What could account for this change, is it quality employment creation, reduced incidents of disease, among other issues,” it stated.

“We believe that it is important to know the source of such significant reduction in urban poverty and its quality of life dimensions so that the policy mix, strategies or interventions that brought about such an outcome could be strengthened for more poverty reductions.

This is so especially recognising the fact that sustained economic growth at a certain growth rate is necessary but not a sufficient precondition for poverty reduction.”

Labels: JCTR, MAGANDE

posted by MrK @ 8:41 PM