ZDB Success Depends on Vibrant Private Sector
Former Finance Minister Ken Kandodo, discredited for presenting the Zero Deficit Budget, has resurfaced to defend the financial plan he introduced to Malawians.
Mr. Kadondo says the Zero Deficit Budget will only be successful if there is a booming private sector.
“I urge government to create conducive environment for the private sector to operate in,” he said adding;
“There is a correlation between a vibrant private sector and government revenue collection, if the private sector does well, there will be more tax collection.”
This, he said will increase the revenue base because if private companies perform well and are making profits, there will be more revenue collection through taxes.
The former finance minister also tipped government to improve its Fiscal discipline in order to reduce wastage of government resources.
Mr. Kandodo, who is Member of Parliament for Kasungu Central, further said basing on the expenditure and the rate of local revenue collection at that time, the Zero Deficit Budget was attainable but the only challenge now is that the revenue collection has declined.
To this effect, the former Finance Minister said it was also justifiable for the current Dr. Ken Lipenga the to reduce the initial budget by 20billion Kwacha.
“Mr. Speaker Sir, let me recommend the Finance Minister for reducing the budget with 20billion Kwacha because he knew that from now to December, it will not be possible to raise that amount of money. He could not have included the estimates that he knows will be unrealistic to raise,” said Mr. Kandodo.
However, opposition MPs insisted that the Zero Deficit Budget is just punishing Malawians through exorbitant taxes.
“There are so many problems with this animal called Zero Deficit Budget. Government should suspend it immediately,” said Mrs. Eunice Makangala, Independent MP for Blantyre City Central.—Zodiak Online
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