Zambia’s debt situation critical – Dr Musumali

By Staff Reporter

 

OPPOSITION Socialist Party General Secretary Dr Cosmas Musumali says Zambia’s debt situation is at its critical and challenging state to the Patriotic Front leadership to manage.

Speaking in an interview with NewsDayZambia.com, Dr Musumali who is an economist reiterated that the current government had over borrowed.

“People are expected to pay more towards debt servicing than anything else because of over borrowing, the money raised by the working masses in Zambia will go towards debt servicing,” Dr Musumali said.

He explained that the national budget indicated that borrowing within the county and outside would continue to sustain the economy.

“The debt levels will not decrease, I would be happy if it remained constant but at the end of the day this is a debt level that is going to increase or remain stagnant,” he said.

Dr Musumali stated that debt situation has continued to be unmanageable.

“Zambia was recently downgraded by the rating agencies, so whatever borrowing that will be done will be very expensive and this is dangerous for the masses,” Dr Musumali said.

He warned that there would be a lot of taxes introduced in 2019 to raise money from the working masses.

“Government will have different ways of trying to get money from the masses – excise duty will increase as Zambians will be required to pay more to ensure that debt is sustained,” he said.

Dr Musumali also said the inflation for the country had not fared well as it had constantly above 6 %.

“Those in leadership are failing to grow the economy, unemployment rate still stands at 42% from the second quarter of 2018 and it has not improved anyhow over the past quarters,” Dr Musumali said.