EAZ EXPECTS BUDGET CENTERED ON INCREASED DOMESTIC REVENUE FINANCING

The Economics Association of Zambia (EAZ) is anticipating an increased focus on domestic revenue financing in the 2025 budget to lessen Zambia’s reliance on external borrowing.

EAZ President Dr. Oswald Mungule emphasized the importance of increased domestic revenue financing for improving the country’s fiscal sustainability, especially given its current unsustainable debt levels.
Dr. Mungule advocated for the government to aim for domestic revenue contributions of at least 80 percent of the total budget.

“This would involve expanding and diversifying the tax base through progressive measures that capture revenue from a broader spectrum of the economy, including previously under-taxed sectors,” he said.

Dr. Mungule also stressed the need for the budget to prioritize key sectors such as Energy, Mining, Agriculture, and Manufacturing to drive economic recovery and growth.

He highlighted the budget’s importance in addressing challenges within the energy sector, including petroleum issues and electricity shortages.

Dr. Mungule emphasized that increased investment in energy generation and infrastructure is vital to support economic growth across all sectors, while also calling for a conducive environment for investment and growth in the mining sector.

He also highlighted the urgent need for more resources to be allocated towards mechanization and smart agricultural practices in the Agriculture Sector.

The budget is seen as a crucial policy document and economic tool that should strategically address Zambia’s immediate needs and long-term development goals, particularly in line with the nation’s medium-term plan (2025-2027) and the National Development Plan.