ECONOMIST BACKS GOVT’S MOVE TO INCREASE DOMESTIC BORROWING IN 2026 NATIONAL BUDGET
By JOSEPH KAPUTULA
Economist Noah Kabwita has commended the government’s decision to increase domestic borrowing in the proposed 2026 national budget, describing it as a strategic move that is unlikely to trigger significant inflationary pressure.
According to the budget, the government plans to borrow a total of K34.5 billion, comprising K21.6 billion from domestic sources and K12.9 billion from external sources.
In an interview with Phoenix News, Mr. Kabwita explained that domestic borrowing involves mobilizing funds already circulating within the economy, such as through treasury bills and government bonds, rather than printing new money, which can trigger inflation.
He further observes that, with continued fiscal discipline and a stable monetary environment, it would not be surprising if the inflation rate continues to decline from the current 12.3 percent.
PHOENIX NEWS