The World Bank has warned that Zambia is headed for debt crisis.
This morning, the World Bank Zambia office said the PF regime should undertake stricter spending controls to ease the country’s huge debt burden.
“Further efforts are needed to improve budgetary controls and better withstand fiscal pressures if the national debt is to remain at sustainable levels,” the bank said in a report.
“The cost of servicing debt now amounts to 20 percent of domestic revenue in 2017 from 8 percent in 2012. This leaves less resources for development priorities and poverty reduction,” the bank said.
The World Bank noted that Zambia had continued to have revenue shortfalls in the first half of 2017 and expenditure plans had not been moderated.