By CHILA NAMAIKO –
FINANCE Minister Felix Mutati has said the Government, in its implementation of the 2018 national Budget and in future, will undertake borrowing strictly within sustainable levels.
This is a result of the risk on national debt portfolio that has heightened, and worsened by the economic imbalances faced in 2015 and last year when economic growth was subdued.
Mr Mutati said in addressing such debt concerns, the Government had published the Medium Term Debt Management Strategy that sought to return the debt to low risk of debt distress.
The minister said the strategy outlined key measures to drastically reduce the rate of debt accumulation, and attain a cheaper and longer debt maturity profile.
The strategy also defines measures towards the refinancing of the three Eurobonds and dismantling of the stock of arrears.
“Under the strategy, the Government will also continue to utilise public private partnerships and joint ventures to finance projects and reduce the burden on the Treasury,” he said.
Mr Mutati said this in Parliament yesterday when he unveiled the 2018 national Budget of K71.6 billion under the theme ‘Accelerating fiscal fitness for sustained inclusive growth without leaving anyone behind’.
He said as part of transparency and good governance, a cornerstone of Government, he would during this session of Parliament present a Bill to repeal the Loans and Guarantees (Authorisation) Act.
The Bill will provide for enhanced oversight over the borrowing activities of Government by having the National Assembly to approve loans before they are contracted.
Mr Mutati said the measure was in line with the provisions of the Constitution.
On asset management for State-owned enterprises, Mr Mutati said the Government would put in place a robust asset management system for all State-owned enterprises to assess their viability and sustainability.
A comprehensive monitoring and evaluation framework would be developed to ascertain compliance of the institutions to corporate governance and operational efficiency.
This, the minister said, would ensure the institutions contribute to domestic revenues, employment creation and economic growth.