2014/15Malawi Budget: Donors, experts welcome budget with caution
The country’s traditional donors and economic experts today welcomed the presentation of the K729 billion 2014/15 national budget as prudent but warned government to walk the talk or risk further economic stagnation.
Donors have further said there will be no immediate return to budgetary support unless government observes fiscal discipline and seriously fight corruption.
In absence of the donors, Finance Minister Goodall Gondwe’s budget projected total revenues and grants amounting to K635.6 billion compared to a budgeted amount of MK603.4 billion in 2013/14, an increase of only 5.3 percent.
In this budget, domestic revenues are estimated at K525.3 billion compared with a final revised estimate of K441.6 billion in the 2013/14 financial year. Tax revenues are estimated to increase to K470.1 billion from K388.4 billion that was registered in the 2013/14 financial year.
Earlier, Finance Minister Goodall Gondwe told parliament that the European Union, the World Bank and the African Development Bank have indicated that they could provide budget support amounting to over K43.0 billion.
Reacting to the delivery of the statement, World Bank Country Representative Laura Kullenburg described the statement as “prudent and presented in very difficult circumstances.”
But Kullenburg said there were no guarantees on pledged budgetary support in form of grants.
“We welcome the budget, it’s prudent despite being put together with very challenging circumstances. We welcome very much the commitment to be prudent. We remain open to the idea of support but talks are on-going. Improving systems and performances will be crucial. Bold reforms and progress are needed but the budget is full of realism and pragmatism which is the aspect that has impressed me,” said Kullenburg.
Germany Ambassador Peter Woeste said while the budget statement was promising, he said prudent implementation will be critical saying Germany was waiting for action on several pledges including prosecution of those implicated in the Cashgate.
all donors are worried about is the performance of our system. So corrupt. We are not loving our nation guys.
Lead us for the better as the statement of the world bank representative have said they are open for support but our government is a poor financial manager.So scaring/discouraging for the international supporters. They need accountability and good governance
it is now 50 years that a big number of inhabitants have been using bicycles. Can we shift to using at least simple motobicycles. I believe that Those civil servants who are paid the leas and farmerst can afford to buy these simple motos. It is a shame to the country full of opportunities to development being congested with bicycles. using bicycles as a means of public transport is unbelievable and incomprehensible. remove bicycles on the market as a mean for public transport.