Civil Society for Poverty Reduction (CSPR) observes that this year's national budget has failed
to address the Poverty Reduction Strategy Paper (PRSP) as a national priority.
This trend confirms civil society's usual concern on the lack of political will to
implement the PRSP and urges Government to start making hard choices in favor of the poor.
Notably, the allocation to Poverty Reduction Programmes (PRP) has been cut from K450 billion in the
2002 national budget to K420.7 billion in this year's budget representing a 6.5 per cent decline in
nominal terms and significantly more in real terms if one were to take into account the 26.7 per
cent inflation that occurred by the end of last year. The CSPR also notes with great concern that
less than a quarter of the amount allocated to poverty reduction programmes in last year's
budget was disbursed. As a network that actively participated in the formulation of the PRSP, we are
of the view that poverty reduction will remain a meaningless rhetoric if this trend is not immediately
reversed.
The CSPR strongly contends that the K110 billion (24.5 per cent) spent on PRP in 2002 is
incredibly low even in light of the hunger situation that the country experienced.
The network is saddened that Government had to drastically shift resources from poverty reducing
programs in the 2002 budget to mitigate the hunger situation when there were non-priority areas that
could have been cut.
For instance, it is in the same period that we witnessed lavish expenditures on areas that are not
even remotely connected to poverty reduction such as the hefty award of emoluments to Members of
Parliament and the Executive, the purchase of new motor vehicles and a chain of bye-elections, among
others. Civil society believes that a lot can be achieved in poverty reduction by considerable
containment of unnecessary expenditures.
On the social sectors of health and education, CSPR observes that Government has failed to meet the
aspirations of the people through reduced allocations. The health sector has seen a nominal increase
of 5 per cent while the education sector's allocation of K844 billion represents a 4 per cent decline
over the 2002 allocation. Compared with end year inflation of 26.7 per cent, the two sectors have actually seen a decline in the allocations.
The implication therefore is that it will be impossible to meet the pro-poor programmatic priorities of basic health care; improvement of access to health care; and public health, amongst other priorities as set out in the PRSP. This scenario does not give hope for poverty reduction especially that Government has undertaken to increase spending in the two sectors.
Further more, Government has proved its lack of commitment to poverty reduction by dismally raising
the tax free pay from K150, 000-00 to K160, 000-00 per month even in the face of the ever-rising
cost of living. This is in sharp contrast with the cost of food only for a family of six as
compiled by the Jesuit Center for Theological Reflection (JCTR), which stood at K401, 050-00 in
January 2003.
In light of the above concerns, civil society urges Government to show serious commitment to the PRSP by setting targets for the social sector as the case is with the macroeconomic sector. Decreased spending in the social sector could derail the country's effort to reach the much talked about Completion Point of the enhanced HIPC Initiative later this year.
Lastly, civil society calls upon Government to stop using the PRSP as a mere tool for soliciting
donor funds and use it, instead, as a genuine agenda for Zambia's poverty reduction. We strongly
urge Government to significantly increase the allocation to poverty reduction over what has been
proposed in the Budget Address and to treat poverty reduction expenditures as compulsive
expenditures like those on debt servicing, that is, expenditures that would not be cut
under any circumstances. The CSPR also demands a transparent and accountable budgeting process,
a process that would reflect the core principles of the PRSP.
For further information contact Gregory Chikwanka, Assistant Coordinator, on Telephone 290154,
Fax 293489, or email: cspr@zamnet.zm
20 February 2003
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