By Nation Reporter
THE Ministry of Finance says its basic principle in the next five years will be towards ensuring that it does not spend more than what is generated and also reduce on borrowing.
And Finance Minister Felix Mutati said the country’s economy would remain difficult unless arrears owed to various suppliers and contractors that were pumping up the bad debt were addressed.
Speaking during a consultative meeting with the Bankers Association of Zambia yesterday, Mr. Mutati said part of Government’s duty was to deal with the fiscal consolidation and the need to strengthen the interplay of monetary and fiscal policies.
Mr. Mutati said the Government has set a basic principle to ensure that it remained committed towards reducing levels of borrowing.
“We need to strengthen the interplay of monetary and fiscal policy and on the part of Government we need to deal with fiscal consolidation and the basic principle is that we will not spend more than we have.
“On our side, we remain committed to reduce borrowing and unless we work with you, we will not achieve respectable economic growth,” Mr. Mutati said.
And Mr. Mutati said there was need for his ministry and the banking sector to narrow the gap and to begin to work together and strengthen the trust to be able to grow for the benefit of Zambians.