Subsidies costly, says Chigunta

DR Francis Chigunta says it is important for the government to show Zambians alternative social protection measures being put in place after removing subsidies on fuel and maize consumption.

And Dr Chigunta, who was former president Rupiah Banda’s political advisor, says there must be a strong basis for the government to maintain consumption subsidies because they tend to be very costly anywhere in the world.

Commenting on the government’s decision to scrap the miller-consumer subsidy on maize barely a month after the fuel subsidy that had kept fuel pump prices stable for over a year was removed, Dr Chigunta, a Development Studies lecturer at UNZA, said a lot of money would be saved.

He said consumption subsidies anywhere in the world tend to be costly.

“However, it is important to take into account the plight of the poor.