Sovereign Wealth Fund will help maintain a clean balance sheet by withstanding any internal or external factors that will have an effect on the country’s economy.
Shadow Finance Minister Bire Kimisopa made this statement in Parliament yesterday after the supplementary budget was tabled by Treasury Minister Patrick Pruaitch.
“If we have a sovereign wealth fund we will be able to mitigate all these, we will be able to support the budget, and perhaps consolidate the exchange rate and give confidence to private sector in terms of the foreign currency situation in the country to access foreign currency to pay for goods and services overseas,” Kimisopa said.
He was replying to the treasurer’s report that revised growth projection was caused by country’s drought and also low commodity prices.
Kimisopa further urged the government to hear the cry of the people before formulating any budget.
The 2016 supplementary budget comprises adjustments that include both expenditure saving measures of K928 million and additional revenue raising measures of K958 million.
This will see cuts across all sectors of the government expenditures to raise much needed revenue to fill the drop in forecasted 2016 budgeted revenues.
Picture source EMTV.