The United Democratic Alliance UD economist David Ndii has explained why civil servants will have to forego their salaries.
According to Ndii, over 60% of revenue is being consumed by the country’s large debt.
Ndii detailed that when revenue falls short, or market shift, one has to give in something; either default the loan or forego the salaries.
“Is public finance that difficult? Its reported every other day debt service is consuming 60%+ of revenue. Liquidity crunches come with territory. When maturities bunch up, or revenue falls short, or markets shift, something has to give. Salaries or default? Take your pick.” Said David Ndii in a post.
