PMRC notes need to reduce on budget deficits towards the social sector

PMRC Executive Director Bernadette Deka

Policy Monitoring and Research Centre (PMRC) says the expected marginal increase in the 2019 national budget to K75.2 billion from K71.6 billion in 2018 is consistent with its expectation as there is need to reduce on budget deficits towards the social sector and dismantling arrears.

In statement on PMRC budget expectations, Executive Director, Bernadette Deka says the Centre expects expenditure on goods and services to decline to below 1 percent in 2019 as austerity and fiscal consolidation measures aimed at reducing the administrative costs of running government take effect.

Ms Deka says the PMRC expects the 2019 budget to address how government will curtail further accumulation of debt and the operationalization strategies for the sinking fund.

She says PMRC further expects government to allocate sufficient resources towards dismantling of domestic arrears which currently stand at K13.9 billion and curb any further accumulation of arrears through the full roll-out of the Integrated Financial Management System (IMFIS).

She states that payment of arrears will ensure that there is enough liquidity for Micro,Small,AND Medium-Sized Enterprises which form the backbone of the economy.

Ms Deka adds that the centre expects government to prioritize funding payments of pensions to ease the burden of keeping unpaid retirees on the government payroll.

Ms Deka says PMRC encourages government to press on towards achieving growth, fiscal consolidation and debt sustainability.