SOCIALIST PARTY PRESIDENT CRITICIZES 2025 BUDGET PLANS IN STATE OF THE NATION ADDRESS

SOCIALIST PARTY PRESIDENT CRITICIZES 2025 BUDGET PLANS IN STATE OF THE NATION ADDRESS

…Warns of Economic Strain as UPND Government Targets 80% Domestic Revenue Mobilisation

Lusaka, Zambia — Socialist Party President Dr. Fred M’membe has expressed grave concerns over the projected 2025 budget, particularly its reliance on domestic revenue mobilisation.

During his state of the nation address, Dr. M’membe highlighted that the government aims to fund 80% of the 2025 budget through domestic resource mobilisation warning that this approach could crowd out the private sector from the credit market, as the government would need to raise funds through the issuance of government securities at increasing yield rates.

“Tax revenues will dwindle as the economy contracts,” he cautioned. “So where will this 80% domestic revenue mobilisation come from? Another pie in the sky!”

Dr. M’membe also pointed to the anticipated rise in VAT collections, projected to increase from K36.4 billion in 2024 to K48.3 billion in 2025, amid what he described as already stressed households and local businesses.

“What the UPND government is telling us is that in 2025, let’s brace our homes and businesses for more stress and hardships,” he remarked.

Dr. M’membe further lamented the introduction of a 10% excise duty on betting in 2025.

“For those into ma bola bet, the UPND government budget introduces 10% excise duties on betting. Mu ka chula!” he declared, suggesting that this would further burden already distressed citizens.

The Socialist Party President also addressed the issue of debt servicing, which is projected to grow by 22%, reaching K217.1 billion in 2025.

He criticized the celebrated debt restructuring process, stating that while it was sold as a solution, it has only led to increased allocations for debt servicing, from K38.9 billion in 2024 to K54 billion in 2025.

“We warned that before debt restructuring, there was no debt servicing. If we were facing challenges then, what more when debt servicing commences following debt restructuring?” he queried.

He highlighed the negative impact of ballooning domestic debt on local investments likening government’s resource mobilisation efforts to a suction pump that deprives local investors of the funds needed for production.

“How will the economy grow?” he questioned, leaving the audience to ponder the future economic trajectory under the current administration’s budgetary plans.