GOVERNMENT has released the 2016-2018 Medium Term Expenditure Frameworks (MTEF) with a clear message that will see the reduction of the size of the public pay to 8.4 percent of the Gross Domestic Product (GDP) which has been gobbling more than half of the National Budget.
The MTEF would also see increased investment in the energy sector with the development of 600MW solar power over the same period to ameliorate the current power deficit that has hit the country and other countries in the region.
Secretary to the Treasury Fredson Yamba said in a statement issued yesterday that the MTEF would focus on the economic and fiscal objectives with the aim of maintaining a positive broad based growth trajectory, macroeconomic stability and consolidating the fiscal position.
Mr Yamba said as part of Government’s efforts to achieve the new Sustainable Development Goals, it was targeting attaining inclusive growth.
He stated that in the 2016-2018 medium term government would focus on consolidating its fiscal position to create fiscal space for vital public services and infrastructure development.
“In accordance with the theme of the Revised Sixth National Development Plan (R-SNDP) of Achieving People Centered Economic Growth and Development, the 2016-2018 Medium Term Expenditure Framework reflects the Government’s continued and unwavering commitment to ensure that the benefits of economic growth are shared widely by all citizens of every age and gender and by all regions of Zambia,” Mr. Yamba said.
Mr. Yamba said Government was going to limit its domestic borrowing to no more than 1.0 percent of the GDP to avoid neither crowding out domestic investment nor putting undue pressure on domestic interest rate.