Government to reduce PSIP and DSIP funds

​The Provincial and District Services Improvement Programme funds allocated to each Member of Parliament will be reduced.

Deputy Prime Minister and Treasurer Charles Abel made this announcement during the launch of the 100 Day Economic Stimulus Plan recently.

However, he said the reduction will be only temporary as the Government is committed in funding the PSIP and DSIP.

He said the details of the cut will be highlighted in the Supplementary Budget where the Government will announce in the near future.

Abel added that the Government will maintain the Ward Service Improvement Programme (WSIP) fund and continue to fund the wards across the country.

Currently the PSIP is K5 million to each province while K10 million to each district.

“I would like to point out that the Government revenues as a percentage of GDP have fallen over the last 10 years whilst cost have risen.

‘Further, there remains the fundamental structural issues in our economy of over reliance on the extractive industries, global commodity prices and an over reliance on imports for our basic needs like fuel and food.”

Author: 
Freddy Mou