Credible sources in the Finance Ministry have confirmed that FNPF
has been told to make arrangements for further loans of up to $500 million
to the State to plug a huge hole in its 2014 Budget.
Readers will recall that a revenue provision of $475m was made in the 2014 Budget to be raised through the sale of State assets. This has obviously, not materialized, pushing the country further down the debt abyss.
Now the State has to borrow to meet the revenue shortfall, pushing the net deficit to GDP ratio from 1.9% as forecast in the Budget to 5% – which is extremely high and unsustainable.
The vote buying scams of the regime pre-September elections will also have to be paid for with more to come through irresponsible promises of freebies: free water, free milk to class one students, free bus fares, free education, subsidized electricity, the gifting of brush cutters, sewing machines, chain saws etc etc…
We can expect VAT to go up in the 2015 budget, along with a host of other open and hidden fees and charges.
After all, FLP had warned that nothing is for free- someone has to pay. And who but you as consumers and tax payers!