Tuesday, 07/28/2020 to Wednesday, 07/29/2020 - Chisamba, Zambia

ZCTU PRE-BUDGET WORKSHOP

Zambia’s economic growth has slumped from the consistent growth averaging above 6 percent between 2006 and 2016 to below 4 percent between 2017 and 2019. The low economic growth in the medium term is characterized with high public debt levels, a volatile exchange rate, high income inequality, high unemployment levels, high interest rates, and a general and sustained increase in the cost of living. ZCTU along side other stakeholders, proposes measures that will help address the current economic challenges to ensure adoption of economic policies that will bring about sustainable development and shared prosperity

Zambia’s economic growth has slumped from the consistent growth averaging above 6 percent between 2006 and 2016 to below 4 percent between 2017 and 2019. The low economic growth in the medium term is characterized with high public debt levels, a volatile exchange rate, high income inequality, high unemployment levels, high interest rates, and a general and sustained increase in the cost of living. Fiscal policy in the medium term is also characterized with high fiscal deficits largely arising from fiscal indiscipline leading to failure by central government to meet a number of fiscal obligations such as paying salaries for public service workers and funding public institutions such as universities and the local authorities. To address the current economic challenges, there has been renewed impetus by the government to strengthen fiscal management by strictly applying austerity measures. The likely impact of strict austerity measures is reduced space for social spending and that will adversely affect the vulnerable section of the population. Strict austerity measures will demand for increased spending towards social protection programs to ensure inclusive transformation of the economy without leaving anyone behind. Therefore, Zambia Congress of Trade Unions (ZCTU) alongside other stakeholders, proposes measures that will help address the current economic challenges to ensure adoption of economic policies that will bring about sustainable development and shared prosperity. The workshop at Fringilla was attended by participants from many institutions which included; ZCTU,  the Chamber of Mines, ERB, INESOR, CSPR, ILO, MoLSS, MoF, JCTR, FES, CTPD and Oxfam. Oxfam made a detailed presentation on the current macroeconomic situation and the performance of the 2019 national budget, and recommendations towards the 2020 national budget. Representatives from the other institutions mentioned above responded to the presentation through moderated panel discussions. 

Friedrich-Ebert-Stiftung
Zambia Office

5583 Great East Road
P.O. Box 30554
Kalundu
Lusaka

+260 211 295615/6
+260 211 293557

info(at)fes-zambia.org
 

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