In order to improve the economic situation, Emmanuel Zulu, an economist, has recommended that the government, through the Ministry of Finance, decrease both external and domestic borrowing in the 2024 national budget.
In light of the projected fiscal deficit for the 2023 budget, the government has been advised to reduce both domestic and external borrowing in the 2024 national budget. The 2023 budget had estimated a deficit of 7.7 percent of Gross Domestic Product (GDP), which was to be financed through a net domestic debt of K15.6 billion and external debt of US$1.4 billion. To avoid further financial strain, experts suggest that the government should prioritize reducing its borrowing in the upcoming budget.
In the upcoming 2024 national budget, the government has been advised to reduce both domestic and external borrowing. According to Mr. Zulu, relying on borrowed resources year after year has not been an effective approach to achieving budget objectives. In fact, it has often resulted in economic stress and external complications. Therefore, it is recommended that the government explore alternative methods to fund the budget and reduce reliance on borrowing.
As the government prepares to present the 2024 national budget in September, experts are advising a reduction in both domestic and external borrowing. It is recommended that the government work within the available resources to ensure a sustainable budget execution. This approach will help to avoid excessive debt and promote financial stability in the long term.