Consumer Unity Trust Society

Press Release: THE FAIR TAX MONITOR REPORT UNDERSCORES ZAMBIA’S TIGHT FISCAL POSITION
22/09/20

Government expenditure has outpaced its resource mobilisation which has led to an increasing fiscal deficit which stood at 9.1 percent of GDP at the end of 2019. Zambia’s fiscal performance remains a challenge as debt levels were recorded at over 70 percent of GDP in 2019. This is largely due to Zambia’s limited domestic revenue sources. As the debt has continued to escalate, Domestic Resource Mobilisation (DRM) has become a top Government agenda to ensure that Zambia is better placed to fund its development. Efficient and effective tax collection therefore is important to a country like Zambia because it is the biggest source of long-term financing for sustainable development and the determinant of good governance in terms of high-quality service provision; holding the Government to account; and citizens participation in the management of public funds.

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