‘Economic growth projection unrealistic’

The Budget and Finance Committee of Parliament has told government that any economic growth rate projections above four percent are not realistic.

Committee chairperson Rhino Chiphiko made the statement in Parliament on Friday when he presented his committee’s report in response to the Mid-year Budget Review Statement presented by Minster of Finance, Economic Planning and Development Goodall Gondwe.

Chiphiko said the country’s high inflation and interest rates continue to discourage private sector investment.

Late last year, Gondwe had projected that the country’s gross domestic product (GDP) would grow this year by at least 6.1 percent. However, the minister has since conceded that the projections could be affected by the incessant rains which have caused havoc to the nation.

In light of that, Chiphiko asked the minister to make realistic projection of the economy.

On the recent wage and salary harmonisation process, Chiphiko said his committee has failed to understand government’s rationale.

Said Chiphiko: “In this fiscal year, we have witnessed a number of strikes because, in its quest to harmonise salaries, government awarded different classes of public servants different pay increases.”