Maravi

(LUSAKATIMES) Govt can’t be spending 50% of local revenue on 1% of the population-RB

COMMENT - I wonder if MPs will lead by example, and forego a month's worth of salaries. Why would only working people have to sacrifice? The problem is that this government has no moral highground from which to make such an appeal. Not only did they vote themselves a stiff pay increase, but they waste hundreds of millions of dollars to corruption, about which they are not very concerned at all - because they directly benefit from it. As long as they have this attitude of 'we have arrived' because of being elevated into government, we can't take them seriously. And as long as their attitude is that they have been 'blessed' by patronage, and the people are just there to be governed over, they deserve to be voted out of office.

Govt can’t be spending 50% of local revenue on 1% of the population-RB
Wednesday, June 24, 2009, 20:02

President Rupiah Banda has explained that the 15 per cent salary increment for public service workers would affect this year’s gross domestic product (GDP).

In this year’s K10.6 trillion budget, parliament approved K5.1 trillion, which translates into 47.6 per cent of the budget, for personal emoluments.

President Banda said government had only budgeted for an 11 per cent salary increment for public service workers this year.

He said the 15 per cent salary increment was therefore above the 11 per cent that was budgeted for salary increments for civil servants this year.

Recently, the country experienced a spate of industrial unrest when public service workers around the country, mainly in the health and education sectors, demanded a salary increment and an increase in other allowances.

“The unions rejected the programmed salary increment of 11 per cent and settled for a minimum of 15 per cent increment which translated to 48.9 per cent of the K10.6 trillion domestic revenues,” he said.

He said this has pushed up the expenditure on personal emoluments from K5.1 trillion (47.6%) to K5.2 trillion, resulting into an increase of K145.3 billion over the prepared total budget.

“As Zambians, we must take the decision as to whether spending half of the budget on this small number of people is right or justified,” he said.
Mr. Banda said this additional amount would have to be sourced by reducing expenditure and by suspending other programmes.

“This will negatively affect the implementation of other government programmes,” he said.

He further explained that the current wage bill means that 50 per cent of government domestic revenues are spent on one per cent of the population. The one per cent of the Zambia’s population is 170,000 people.

“As Zambians, we must take the decision as to whether spending half of the budget on this small number of people is right or justified,” he said.

He added that “If 50 per cent of the domestic revenues is spent on personal emoluments, how then do we provide other necessities, the social and economic infrastructure including roads, hospitals, schools and energy, defence and security, which are critical to economic growth and poverty reduction”.

President Banda appealed to the striking nurses and other health sector workers to return to work.

Nurses have refused to return to work until their demands for an increase in their uniform and night duty allowances and an introduction of risk allowance are paid.

“May I appeal to our workers to be sensitive to the economic reality that this country is facing. You may want to learn from other countries, such as Ireland where workers are taking salary cuts as a result of the global economic crisis,” he said.

He also cited the British Airways employees who have agreed to forego a month’s salary to help the company, as one other example Zambians should take.

“That is the kind of attitude we need to inculcate in our people, including myself as President and ministers,” he emphasized.

Meanwhile, President Banda has constituted a salaries and wages commission that would look into the current structure of the wages and salaries in the public sector,” he said.

He has appointed Professor Muyunda Mwanalushi as Chairperson of the Commission, whose other members would be announced in due course.

ZANIS

Labels: GDP, RUPIAH BANDA, STRIKE

posted by MrK @ 7:29 PM