DR. M’MEMBE: HOW DO YOU OPPOSE HEAVY BORROWING BUT PROPOSE EXPENSIVE FUEL SUBSIDIES?
By Alexander Nkosi
On 20th June 2023, Dr M’membe shared an article where he urged government not to borrow to finance CDF as this would be as bad as the fuel subsidy challenge under the previous regime whereby the subsidy was accumulating into debt. He further argued that this would lead us back to a debt mountain after UPND government which the next government will need to resolve.
I find it contradictory that having questioned the fuel subsidy which accumulated into debt under the PF led Government, he is now proposing that Government brings back the fuel subsidy in view of the anticipated increase in fuel prices arising from the sharp increase in the price of crude oil, now trading at USD92 per barrel. Zambia would need to spend about K20 billion per year to bring down the price of fuel to K17 per litre. Suspending taxes on petroleum products as a form of subsidy would create a gap in domestic revenue which will be covered by heavy borrowing. This is the same borrowing Dr. M’membe has passionately opposed.
Thank you.