Former finance deputy minister Jonas Shakafuswa has warned against a huge budget deficit as it will distort the economy.
Shakafuswa said the rush to scrap off funds through subsidies may have been as a result of overspending money on un-budgeted for expenditure.
Shakafuswa said while a deficit could be averted by domestic borrowing he said the threshold had already been exhausted.
“When you talk about a deficit, there are several ways of averting it. One of the ways is domestic borrowing but our friends now stand at K3 trillion and if you push that further it could shoot up to K6 trillion,” he said.
“Maybe that is why we are seeing people now having to introduce desperate measures like the removal of subsidies.”
He said the PF government had not shown prudence with finances and were now having to cover up with short term measures.
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