KISERO: Take away Treasury’s power to incur debt - 6 months ago, 9 Aug 16:53
Finally, you get the impression that the government is beginning to come to terms with the reality that public debt is galloping out of control.
Last week, the government put out a notice by which it seeks to launch massive recruitment of experts in the department of debt management currently based at the National Treasury.
Clearly, the government is slowly getting out of the denial mood. We have had enough of that spin about how our debt levels are still within sustainability thresholds set by the International Monetary Fund.
When you reach a point where your debt service to revenues is at 21 — as the government admits in the current Budget Policy Statement — whether you are still operating within debt sustainability frameworks and threshold crafted by experts sitting in carpeted rooms in Washington is academic.
If no drastic action is taken, we will soon be staring at a Mozambique-style sovereign debt meltdown.
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