Maravi

Govt projects reduction in inflation

COMMENT - The government needs to reduce waste, before they start borrowing a cent.

Govt projects reduction in inflation
Written by Fridah Zinyama
Thursday, January 01, 2009 8:02:31 AM

THE government is this year planning to increase external and internal borrowing in order to meet the projected deficit which has been projected due to a limited revenue base.

And the Ministry of Finance and National Planning has this year projected to bring down inflation to 10 per cent before steadily easing down to single digit levels of around 9.0 percent in 2010.

Meanwhile, secretary to the treasury Likolo Ndalamei has stated that the government will increase resources towards food security and social safety net programmes to enhance food production and curb the impact of rising food prices on the poor.

In a statement yesterday on macroeconomic objectives, policies, economic growth and competitiveness for the 2009-2011 medium term, secretary to the treasury Likolo Ndalamei stated that in light of a strain in projected revenues for 2009 and the need to accommodate spending on priority programmes, a higher deficit is planned for 2009 and in the medium term.

Ndalamei also stated that it would be the government’s monetary priority over the period 2009-2011 to bring down inflation back to single digit levels.

He stated that the government was committed to the free float regime of the Zambian kwacha.

And Ndalamei added that the government would this year like to improve the lives of Zambian citizens by increasing the allocation of funds towards sectors that will help improve the country’s food production.

He stated that the government would also have to ensure that it achieves some of the objectives it had set for itself through the Fifth National Development Plan (FNDP), of accelerating growth and rapidly reducing poverty among its people.

Ndalamei added that the key macroeconomic objectives for the 2009-2011 Medium Term Expenditure Framework (MTEF) would be to sustain macroeconomic stability; maintain government borrowing within sustainable levels; promote economic diversification; increase investment in human capital and enhance the competitiveness of the Zambian Economy.

Labels: INFLATION

posted by MrK @ 8:03 AM