Northern Governor Gary Juffa has described the 100 Day Economic stimulus plan by Deputy Prime Minister and Treasurer, Charles Abel, as a ‘terrible idea’.
He specifically raised concerns on the reduction of the Provincial and District Services Improvement Program funds.
He said given the situation the country is facing, such funds are the only ones available to many districts and provinces to be able to meet the shortfalls from the lack of funding from the government via the recurrent and functional grants.
However, Juffa said most of the recurrent and functional grants have never been paid to districts and provinces.
He said many provinces and districts use PSIP and DSIP to fund health, education and other emergencies.
“And if we are to take these funds away, then where are we going to get the funds to meet responsibilities for our people?”
He said if the Government is serious about cutting the PSIP and DSIP, then they should budget those funds to health, education, disaster and areas where it needed funding at all times.
“The Government should be going after the companies that aren’t paying the taxes rather than hitting the people who are already suffering.”
He added that doing away with PSIP and DSIP was simply not a good idea during this time when the country is facing economic crisis.
Juffa reiterated that the Government should rethink its revenue strategies and focus on reviewing exemptions to giant corporations, focus on companies in the Forestry and Fisheries sectors which have evaded tax for decades and continue to declare losses but are yet building empires in the country.
He said many provinces with small revenue base will be affected by the government’s plans in reducing the PSIP and DSIP funds.
The Government will be reducing K886 million in its 100 Day Economic stimulus plan.