Govt cautioned against continued borrowing

The Civil Society for Poverty Reduction (CSPR) has cautioned government against continued borrowing.

This comes as Government is considering issuing another US$ 1billion international bond specifically targeted for the agriculture sector.

CSPR Board Chairperson John Lijimu has told Q-fm in an interview that much as it is necessary to find ways of boosting the agriculture sector, the rate at which government is borrowing is dangerous.

Mr. Lijimu says government can find other ways of growing the agriculture sector other than borrowing considering the fact that it still has other debts to service.

He says government should wait until it has repaid the other loans it has acquired before contracting new loans.

Mr. Lijimu notes that in many instances, money borrowed by government has not fully benefited the targeted sectors hence there is no assurance that the money government intends to borrow for the agriculture sector will be used for the right purpose.

He further states that government should also consult with stakeholders before it borrows the one billion dollars Euro bond for the agriculture sector.

QFM NEWS