If we don't turn up in our numbers and vote next year, the economy will only go from bad to worse.
Here is how:
In 2008, we had reserves in our coffers.
The Levy admin had been planning an infrastructure programme to be executed in phases. This is what became #LinkZambia8000.
Here is how:
In 2008, we had reserves in our coffers.
The Levy admin had been planning an infrastructure programme to be executed in phases. This is what became #LinkZambia8000.
Link Zambia 8000 was a planned road infrastructure development programme for over 8000 kilometres of road network.
The idea was to open the country up to investment, thereby enabling access to markets for remote areas.
Unfortunately, Levy died and what happened happened. PF won
The idea was to open the country up to investment, thereby enabling access to markets for remote areas.
Unfortunately, Levy died and what happened happened. PF won
When Michael Sata became President, he adopted the MMD govt's infrastructure plans and passed them off as the PF's.
Thus began the building of roads.
Because he promised the moon and everything under the sun, however, Sata was in a hurry to execute everything at once.
Thus began the building of roads.
Because he promised the moon and everything under the sun, however, Sata was in a hurry to execute everything at once.
So what should have been a phased out infrastructure development plan became a mammoth one to be done immediately.
To finance this, the PF began borrowing.
The Sata admin alone sent our borrowing north of 50% of GDP.
They then went back to parliament to raise the debt ceiling.
To finance this, the PF began borrowing.
The Sata admin alone sent our borrowing north of 50% of GDP.
They then went back to parliament to raise the debt ceiling.
PF aggressively went about seeking a majority in parliament so they could control votes on bills and such.
So they petitioned every other election at parliamentary level, secured annulments, went for by-elections and secured their majority. They then voted to raise debt ceiling.
So they petitioned every other election at parliamentary level, secured annulments, went for by-elections and secured their majority. They then voted to raise debt ceiling.
The debt ceiling dictates how much government is allowed to borrow on behalf of the people.
Parliamentary approval is required to pass a vote to set, raise or lower it. Without majority numbers, the ruling party will need the opposition to buy into their proposition and agree.
Parliamentary approval is required to pass a vote to set, raise or lower it. Without majority numbers, the ruling party will need the opposition to buy into their proposition and agree.
So that is how the debt ceiling was raised.
The borrowing continued.
60% of GDP, 70%, 80%, 85%.
On and on it went.
We have now reportedly crossed 90%.
Quick math;
When you borrow, you pay back. Simples.
You need money to pay back.
So where are we getting this money?
The borrowing continued.
60% of GDP, 70%, 80%, 85%.
On and on it went.
We have now reportedly crossed 90%.
Quick math;
When you borrow, you pay back. Simples.
You need money to pay back.
So where are we getting this money?
1. Taxes.
2. Other revenue opportunities.
The first is fairly simple.
You are taxed Value Added Tax and Pay As You Earn. Everyone pays the first. Those in gainful employment or industry pay the second.
Businesses are taxed too. For example, mining companies.
2. Other revenue opportunities.
The first is fairly simple.
You are taxed Value Added Tax and Pay As You Earn. Everyone pays the first. Those in gainful employment or industry pay the second.
Businesses are taxed too. For example, mining companies.
Our taxes have stayed the same over the years.
Mining companies are paying as little as they always have, while underdeclaring profits or not showing their true books.
Everyone knows this.
So those in employment bear the brunt of this, which is why our taxes are so high.
Mining companies are paying as little as they always have, while underdeclaring profits or not showing their true books.
Everyone knows this.
So those in employment bear the brunt of this, which is why our taxes are so high.
A couple of days ago, Minister of Finance Bwalya Ng'andu, presenting the 2021 budget, announced a raise of the PAYE threshold to K4000.
Simply, if you earn K3,999 and below, you will not be required to remit Pay As You Earn.
The connection is straightforward; tax base dwindles.
Simply, if you earn K3,999 and below, you will not be required to remit Pay As You Earn.
The connection is straightforward; tax base dwindles.
So here is the thing guys;
We do not have a sovereign wealth fund that earns us Forex to supplement local revenue opportunities.
We can only bank on taxes to raise money for expenditure and pay debt off.
If you spend more than you earn, you are in distress－where we are now.
We do not have a sovereign wealth fund that earns us Forex to supplement local revenue opportunities.
We can only bank on taxes to raise money for expenditure and pay debt off.
If you spend more than you earn, you are in distress－where we are now.
Do not be cheated.
These tricks to appease you are quick fixes. Very soon, ERB will announce a reduction in energy costs, hence reducing fuel pump prices. All this is to get your vote.
After 2021, things will get worse.
Stay woke.
Register to vote. Spread the word. Vote 2021.
These tricks to appease you are quick fixes. Very soon, ERB will announce a reduction in energy costs, hence reducing fuel pump prices. All this is to get your vote.
After 2021, things will get worse.
Stay woke.
Register to vote. Spread the word. Vote 2021.
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