President Michael Sata says the removal of the subsidy on petroleum products will enable the state to have more finances available for spending and guaranteeing proper implementation of all government programmes and projects.
The President said it is necessary that the subsidy on petroleum products, which has been a burden on state coffers for a long time, is removed and consequently the price of fuel adjusted upwards in order to attract wider social benefits for the general populace.
Mr Sata said in 2012 the treasury redirected resources amounting to KR 754 million from implementation of other programmes and activities in the budget to finance the fuel subsidy.
President Sata further noted that for the 2013 budget, government has already paid a sum of KR571.5million in fuel subsidies as at January 18, 2013, adding that an estimation of about K1.1 trillion will be paid in 2013 as subsidies if no adjustment is made to the price build up or the pump price.
This is contained in statement made available to ZANIS in Lusaka today by Special Assistant to the President for Press and Public Relations, George Chellah.
The President noted that people may wish to know that the estimated K1.1 trillion subsidy can go a long way in financing the construction of more than 100 new rural primary schools or over 120 new rural health centres to help the majority marginalised Zambians.
He further explained that the funds are diverted from expenditure on social sector and infrastructural development that if spent would have accelerated poverty reduction and employment creation especially for the youths.
Mr Sata said the removal of the subsidy will also make more finances available for spending and guarantee job creation and the development of the infrastructure such as schools, universities, hospitals as well as the Link Zambia 8000 project, which will open up the rural areas for increased trade and investment.
The Head of State added that the decision will also make funds available for the upgrading of Indeni Oil Refinery to enable it process pure crude oil which is cheaper to import and will result in cheaper imports by about US$10 million while providing other by – products to be used in plastic, road and fertiliser industries.
President Sata said he is confident that the overall short and long – term benefits to Zambians of this action outweighs, by far, any perceived negative consequences.
The President said in its pursuit to improve the livelihood of all Zambians, the PF government remains committed to ensuring that there is a transparent and equitable distribution of resources to all sectors to facilitate greater economic growth.
Meanwhile, President Sata is this Friday expected to flag off the commencement of the construction of the 61km Chalimbana road project, another project under the Link Zambia 8000, which will provide shorter route to the Leopards Hill road passing through Chiawa to Chirundu.
On the same day, the Head of State is also expected to lay a foundation stone for the construction of Chalimbana University which is a part of his vision to overhaul and develop the education system by increasing the number of public universities as espoused in the PF manifesto.
ZANIS
CNP in his lies as always.
how about putting a halt to indescriminate nad unnecessary by-elections and directing resources to development programes?
more people will certainly benefit from fro such decisions than burdening the general population following the removal of fuel subsidy
How hard is that
Come-on people, by-elections are a Constitution issue that NOT even PF has powers to change! If you want by-elections to end, then change the Constitution. I hope you are just not cry-babies and, instead, you took your civic duties seriously enough and contributed to the just ended NCC by submitting your concerns and ideas.
At the moment, no one has the right to stop any person (including MPs) from disassociating with his/her current political party and joining or forming another one. Neither does the Constitution prohibit any political Party from expelling an MP it feels no longer conforms to its agenda (it would help discouraged this.) Nor does the Constitution prevents the President from giving Cabinet jobs to opposition MPs. So, it is unfair to simply blame PF on this one!
Rubbish
Interesting indeed. When MMD raised fuel prices by 15% it was to fund corruption. And citizens were urged not to believe the reasons given for the raise. PF raises fuel by 21% it is to create jobs! Why should we believe the reasons given?
Awesome ! It is all about priorities.
Indeed its all about priorities
stil what about the by elections money….arent we loosing out…kaya!
I hope that is being addressed in the new constitution. I know some of us sent submissions to the committee to that effect – but usually diaspora voices are not heard as effectively as those inside. I hope those who submitted inside will prevail on this cash-draining exercise. Believer, did you make your sentiment known?
It is also true that k15 Billion that Nchito and Mmembe owes tax payers can build a good secondary school.The cost of keeping judge Chakopa can finance all government secondary schools in say Lusaka .Every sensible government in the world is cutting their budget on expenditure.And here we are inflating our expenditure with Chakopa’s living allowances and pay.Kaseba office is another K5 billion wasteful drain on tax payers cash.When are we going to learn?Change starts from within.
Twatendwa nomba with such nonsense. The goverments expenditure is just too much. Cut on your useless trips you morons
Good and long overdue move Mr Sata. But the civil service wage bill reform is another area that needs a similar bold decision. Long term sustainability of policy key to our national development.
For as long as the savings from the elimination of this subsidy is directed at funding projects stated herein, this will turn out to be one of PF’s boldest and wisest policy decision so far. But, like many times before; if careless politics, mismanagement and unbridled thieving is allowed to creep in, the Zambian poor will have been “$crewed” twice over.
Yes, fuel subsidies are expensive to any government and only in rare occasions do they impact the poor directly to lift them out of poverty. Most poor don’t even own machinery or run enterprises that require petroleum products (Gasoline or Diesel) anyway! So these subsidies tend to mostly benefit the already well-off. I know some might argue that Agriculture will be impacted. Yes, but well-target subsidies can take care of that.
Additionally, we can package kerosene for sale to targeted groups (there will unavoidable overrun by the already privileged) but if the outlets and distribution management is in the area where these products are needed most there could be some benefit accruing to them in that way. It is fine to remove subsidies; they are like aid in general.
So you never catch a bus or buy any goods from a shop or market? You think the price of everything won’t go up just because you don’t own any machinery?
My friend the price of literally everything will go up.
Am sorry Michael but I just do not understand you. Firstly, how do you expect an extra tax on the citizens to help the citizens? That’s more like asking people to spend their money in a particular way. Facts be told, remarks by Watchdog are accurate that Sata is a crony, leading from behind. If you plan to increase fuel prices, why didn’t you announce this say, in January and authorized sectors affected by this policy to consequently increase the prices of their products and services?
What stops you from adjusting your prices accordingly in May? And what extra tax are you talking about? Citizens will now pay the true value for fuel. In fact, most economists will tell you that subsidies are generally bad because they distort the real prices of commodities.
Yes, this will hurt a little. But it will be mostly the well-to-do who will be forced to pay exactly what they should have been paying for fuel all along. And the poor will gain in terms of more health centers, schools for their children, better roads, extra, in their areas.
By the way, just wait and see who will raise h1ll about this; I can assure you it ain’t gonna be poor people in rural areas, but ‘moneybags’ with Pajeros(sp) and Hammers to transport your secret concubines to Kalingalinga or Maiteneke!
Good move ba presdo. we will only judge you after five years.
That is if you will finish …….
It doesnt make sense.This is the money they want to use for the unbudgeted by-elections.The economy can still absorb the so called subsidy on fuel without necessarily resorting to unwarranted increases.
Does it make sense to entice the civil servants by promising them a salary increase and at the same time remove that benefit thru increased cost of fuel?Look at it this way from a macro perspective,The zambian Kwacha exchange rate value to the US dollar is about 5.4 to 1 so the cost of fuel will be around 2us dollars per litre,right.Compare that price in the whole region you will find that zambians are paying almost double what others are paying inthe region.There was no subsidy on fuel in the first place and now they want to recover the money that they will expend on so called salary incr
This chap has clearly lost my vote now!…lets wait for inflation now
I thought all along that we pay fuel levy on every litre of fuel consumed in Zambia. When did we switch from levy to subsidy? Please educate me
removal os subsidys to fill thier pockets
This was highlighted by a guy whowrite on energy in the post. Thank you we hve a listenig govt. His view were crystal clear. Subsidy onfuel only benefits the well to do. I wih the post could repost that atticle. Were done PF.we need the money for infrastructure development