The Government has circulated a motion to increase its borrowing from K20 to K35 billion.
The budget for this year is K42 billion while borrowing if approved will be K35billion or US$7billion.
If approved the increase will bring the borrowing levels to the amount that the Movement for Multi Party Democracy (MMD) inherited from the UNIP Government which amount was only written off after the Highly Indebted programme spearhead by among other people the later Cardinal Mazombwe.
Sources at Parliament revealed that they were taken aback by the new motion which was circulated without prior consultation, as it would have been shot down if sufficient time had been given fior debate outside the house where party discipline did not apply.
“But obviously the Government believes that this will passed because of the majority it enjoys, but this is a real danger for the country because all indications are that we are already highly indebted and any more money we borrow will be done at even higher interest rates thereby mortgaging the country in the future.” And MP moaned.
The notice of motion reads: That, in terms of Section 3 of the Loans and Guarantees (Authorisation) Act, Chapter 366 of the Laws of Zambia, this House authorises the Minister of Finance to increase, by Statutory Instrument, the amount outstanding at any one time on external loans from twenty billion kwacha to thirty-five billion kwacha re-denominated currency.
Two rating agencies have already downgraded Zambia’s credit rating following uncontrolled expenditure and increased borrowing for unplanned projects and programmes.