Magande differs with Chikwanda on subsidies

NMP president Ng'andu Magande
NMP president Ng'andu Magande
Former Finance Minister Ng’andu Magande says the removal of subsidies is not the solution to addressing budget deficits.

Reacting to Finance Minister Alexander Chikwanda’s statement that the removal of subsidies was simply to make the budget deficit bearable, Mr. Magande has told Qfm in an interview that covering up a deficit spent on a few Zambians at the expense of the majority Zambians is wrong and unfair.

Mr Magande who is also National Movement for Progress president says the loans government has to pay from the removal subsidies do not benefit all Zambians but a particular group of people.

Mr. Magande notes that subsidies were benefiting the majority Zambians who cannot afford the high cost of living they have now been subjected to following the removal of subsidies on maize and fuel.

He adds that any budget is meant to spend tax money on commodities and services for the people, stating that if government spends money to make transport or food cheap, then the tax money is working for the right purpose.

Mr. Magande has since urged government to think through its decision to remove subsidies for the sake of the majority Zambian people who cannot feel the positive impact of the removal of subsidies on Fuel and Maize.