Africa-Press – Zambia. Cabinet has approved the strategy on the dismantling of domestic arrears, chief government spokesperson Chushi Kasanda has disclosed. Kasanda says cabinet has further called for a multi -year approach in the dismantling of the arrears through provision of resources in each fiscal year, from 2022 to 2026.
She said this is with a view to paying off the outstanding arrears over a 5-year period. Kasanda said cabinet agreed to prioritize the clearance of arrears owed to local suppliers of goods and services to stimulate economic activity in the domestic market.
She however, pointed out that this will be carried out after an audit of all the arrears by independent auditors to ensure value for money. The country’s groupings of arrears include, Personal Emoluments; bills for consumption of public utilities; Value Added Tax refunds; Farmer Input Support Programme and Maize purchases under Food Reserve Agency and fuel among others.
In a statement to ZNBC News , Kasanda said the decision was made when President Hakainde Hichilema called for the 15th Cabinet Meeting, on Thursday, 28th July, at State House.
And Cabinet has also approved the cancellation and publication of undisbursed project loans amounting to 2.05 billion United States Dollars as part of the additional measures to address the current debt challenges beyond the ongoing debt restructuring exercise.
She said this will free resources in future budgets to implement other developmental programmes including support to social sectors aimed at improving the welfare of the Zambian people.
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