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2011 budget not a poor man’s budget – Sata

2011 budget not a poor man’s budget – Sata
By Chibaula Silwamba and Chiwoyu Sinyangwe
Sun 10 Oct. 2010, 04:01 CAT

PATRIOTIC Front (PF) president Michael Sata yesterday said the 2011 national budget does not support the poor as claimed by President Rupiah Banda's government. And Professor Oliver Saasa has observed that corruption should not be the motivation for the government's attempts to reduce dependence on donor inflows for budget implementation.

Commenting on the K20.5 trillion 2011 national budget presented by finance and national planning minister Dr Situmbeko Musokotwane under the theme: "A people's budget, from a people's government" in the National Assembly on Friday, Sata said national budget revenue measures were meant to generate funds for President Banda's foreign trips.

"It's not a poor man's budget. Rupiah Banda a few months ago increased fuel prices. Now his minister because they are so desperate, they have increased everything. The money they have increased on motor vehicles licence fees is not because they want to repair the roads but they just want to raise money for Rupiah Banda's useless and unproductive movements," Sata said.

"If there is bumper harvest, where is bumper harvest because the cost of mealie meal is still very high? Now, Nakapwasha information and broadcasting services minister Ronnie Shikapwasha or whatever his name is, he is talking about foreign reserves but if there is any reserves why should our currency be so weak?"

He said Zambia was headed for a disaster because of poor leadership.

"We are in big trouble, we are heading for disaster. All the money which Musokotwane is going to raise is to help them for rigging the elections," said Sata.

And Prof Saasa said key social sectors such as health, education, water and sanitation were always the hardest hit each time the donors pull a plug on budgetary allocation to the country.

Prof Saasa, a prominent Lusaka economic consultant, said the government should only be motivated to reduce dependence on donor inflows when the country gets to a position to survive without external aid.

He said the donor component in the current overall execution was too significant to be ignored.

"But one has to be realistic, the reason to reducing it should not be because there is corruption; the reason is that we should be able to meet the gap and that is the challenge we have now," Prof Saasa said.

"If it is reduced so fast when we are least able to shoulder the difference, then of course you saw what happened in the social sector. Mind you much of the aid to Zambia goes to the social sector, health, education and things like water and sanitation."

He said drastically cutting donor aid would harm key sectors of the economy that would be sacrificed as witnessed last year when the donors reduced funding to the Ministry of Health.

"If donor receipts are reduced drastically before we are ready to find the difference, then of course we will be affected," he said "Last year, when the donors suddenly reduced, what the government did was to mop up finances from other expenditures including infrastructure development. A number of roads were suspended even after approving the contracts, that is not good. So, yes, we should reduce dependence on donors, but yes we must decide on replacement for those resources."

Prof Saasa said the current economic position was not adequate enough to make Zambia live off donors.

"At the moment, donor aid has been quiet significant. But since last year, it has been below 20 per cent of the total government expenditure," said Prof Saasa.

Labels: 2011 BUDGET, DONORS, MICHAEL SATA, SITUMBEKO MUSOKOTWANE

posted by MrK @ 6:36 PM