IMF deal awaits Budget approval-Mutati
Wed, 21 Dec 2016 12:20:25 +0000
By Buumba Chimbulu
GOVERNMENT will formally write to the International Monetary Fund (IMF) to request for a financing programme once the 2017 national Budget has been approved by Parliament, Finance Minister Felix Mutati has announced.
Mr Mutati said Government could not engage with the IMF on any of its programmes before the Budget could be approved by Parliament which he said was in-charge of the entire process on behalf of Zambians.
Mr Mutati explained that the engagement with the IMF would be based on the 2017 national Budget and the medium term expenditure framework.
In an interview, Mr said Government could not request for a programme from the IMF before the Budget approval by Parliament which would dictate parameters of engagement with the fund.
“You cannot write to the IMF requesting for a financing programme before Parliament has approved the 2017 Budget. This is because Parliament is the one that owns the process on behalf of the people. How about if they reject my Budget and change it?
‘‘So prudence dictates that we should do first things first. Let the people own the process and when they do, they give us the parameters of engagement with the IMF,” Mr Mutati said.
Mr Mutati said being sure about the framework of discussion to be put on the table with the fund remained critical to the Government.
He explained that Government formulated an economic recovery plan, a people-driven document which had since been tabled before Parliament and until and unless it was acknowledged, Government would not engage with the IMF.
“The IMF came to check parameters of our recovery plan, which they did. We have now taken that document to Parliament for debate. The critical thing is not to rush and invite, it is for you to be able, as a country, be sure about the framework of the discussion that you want to put on the table and that is what we are doing,” he said.
Mr Mutati emphasised that Government would take total accountability and ownership of the IMF process.
“We will control the process and tell them (IMF) that the plans that we have as a country going forward is the removal of subsidies. In capital expenditure, this is what we are doing, so we have clarity on things and variables that we want to put on the table,” Mr Mutati explained.
