Minister of Finance Alexander Chikwanda has told Parliament that Government has saved K5.5 billion following the removal of subsidies on fuel, maize and fertiliser.
Mr Chikwanda was responding to a written question by Senga Hill MP (MMD) Kapembwa Simbao who wanted to know how much money Government has saved from the removal of subsidies.
“The Patriotic Front government believes that investing public resources in tangible projects that promote sustainable livelihoods and take people out of the poverty cycle is the most effective way of mitigating our people from economic dislocationsm including the removal of subsidies,” he said.
Mr Chikwanda explained that the money saved as a result of the removal of subsidies has been channelled to health, education and other social sectors.
He allayed fears that the removal of the subsidies would create food insecurity.
But Mafinga MP (MMD) Catherine Namugala said the removal of subsidies on maize would make mealie-meal prices go up resulting in hunger.