Government’s record borrowing is misdirected as it was serving consumption instead of infrastructure development Forum for Democracy and Development Edith Nawakwi has said.
Featuring on UNZA radio Focus Programme on Friday night, Nawakwi said the economic policies being pursued by the PF government were worrying and redundant
She said the PF had surpassed UNIP’s levels of borrowing in 27 years in less than 36 months.
“If you look at the borrowing, it has reached record levels of US$4.8 billion in a very short period. It took our first republican president 27 years to accumulate US$7 billion dollars. It has taken Mr Chikwanda less than 36 months to accumulate US$4.8 billion,” Ms Nawakwi said.
She said unlike the PF, the borrowing in the first republic was directed at infrastructure development.
“You can clearly see the difference in borrowing. The borrowing in the first republic was directed at the construction of the university, construction of the Kariba North Bank, construction of the Great North Road, construction of Indeni, construction of schools and many facilities such as the University Teaching Hospital,” Ms Nawakwi said.
She said the borrowed money was currently servicing salaries for public service workers and the bloated cabinet.
“Last year, the public servants got about 100 percent salary increase and there was no money as late as September and we did warn the government that the approach was going to induce hyper inflation in the economy. Am sure their response is a matter of record,” Ms Nawakwi said.
She said even the money that was given to parastatals was being recalled and being diverted to civil servants salaries.She advised Mr Chikwanda to resign as he had failed to manage the country’s economy.
And Nawakwi said the management of the money which was borrowed was also a matter of great concern because it was not being placed at the Central Bank.