The 2021 Budget is not a one of recovery or progress; it’s one of doom.
Dr Bwalya Ng’andu can best be described as a malukula, a mortuary attendant, and not a Minister of Finance.
The figures of this budget speak for themselves. They have tried to lie with figures but figures are not good at telling lies – they are more honest.
Let’s look at the key figures of this budget a little bit closer: the domestic revenue mobilisation is at K68 billionn. If you clear your debts at K46.1 billion and the wage bill at K28.3 billion, your bill is K74.4 billion, which is K6.4 billion higher than your domestic resources. So before you go to borrow money to support the other components of the budget, you will have to borrow K6.4 billion to pay wages and service your debt. What does this spell? Is it not doom? We are in very serious economic problems.
In fact that figure is when you add grants to the domestic resource envelope. In brief, the 2021 budget is as follows: K66 billion will be raised from domestic resources – K53.3 billion from taxes and K12.7 billion from non-tax revenue. Considering that debt servicing is at K41.7 billion and the wage bill is at K28 billion, your total expenditure for just these two components is K69.7 billion. Meaning you have a deficit of K3.7 billion which you will have to top up on domestic resources to service your debt and pay salaries. Granted that the other component of the budget amounting to K51.6 billion will be raised through debt financing, the 2021 budget will basically be financed through debt. Given the country’s balance sheet compounded by poor credit rating and exhausted debt capacity, will that money ever come? Well, keep your fingers crossed.
It won’t be easy. They have taken the country into the mortuary and Dr Ng’andu is nothing but a malukula.