By ALICE NACHILEMBE
President Edgar Lungu says that the art of borrowing is the ability to pay back loans.
The president said he was aware of the accumulation of domestic arrears which has negatively impacted the operation of suppliers and contractors.
Mr Lungu said the performance of the financial sector through an increase in non-performing loans has also been impacted.
He said this has to be Managed and the fiscal space must continue to grow, hence by ensuring macro-economic stability and maintaining debt within sustainable levels..
Mr Lungu said those debts were procured for development, as one of the many financing options pursued.
The Head of State said this in his speech for the Official Opening of the fourth Session of the Twelfth National Assembly.
He said Government has had a robust agenda to ensure that the fiscal space is managed, but faced numerous challenges to meet its objectives.
Mr Lungu said his government is optimistic to overcome these challenges, irrespective of the effects of the world phenomenon.
He said government needs to work more prudently and to do so, the focus should be on “managing for results, by doing more with less.
‘I want to place emphasis on the need to dismantle these arrears, while curbing further accumulation of arrears. My government has taken this very seriously and I have directed those tasked with the responsibility of managing this debt to take stock to ensure that stringent measures are actively implemented,” he said.
Mr Lungu said that it is cardinal that personnel emoluments must be reflective of service delivery to the Zambian people.
He said at the heart of our austerity measures, going forward, we will implement actions to manage the debt stock and curb any further accumulation and save money to dismantle arrears owed to suppliers.
The President said positive results must be achieved at all costs as it can be done and it will be done.