Ecama assesses Malawi new president
The Economics Association of Malawi (Ecama) on Monday praised President Peter Mutharika’s Democratic Progressive Party (DPP) administration, saying it has walked the talk on most of its pre-election promised reforms.
Ecama, speaking through its newly-elected president Henry Kachaje at a pre-budget consultation meeting in Lilongwe, cited a lean Cabinet, public service reforms, a reduction in State Residence and local travel budget, transparency and accountability, non-reversal of key monetary and exchange rate policies, as some of the positive developments that DPP government has demonstrated since being voted into power in the aftermath of the May 20 Tripartite Elections.
But Ecama has since recommended the review of ministerial perks, reduction of the number of State Residences, management of government debt, incentivisation of export-led production and reduction of private sector arrears in the 2014/15 fiscal plan to be presented in Parliament in September by Minister of Finance, Economic Planning and Development Goodall Gondwe.
But he said going forward, Ecama proposes the need to enshrine a lean Cabinet into the country’s Constitution so that it becomes a standard practice by subsequent governments.
On public service reforms, Kachaje said the DPP administration has demonstrated its commitment to make the public service more efficient and productive.
He cited a recent presidential decree banning top civil servants and heads of parastatals from attending presidential functions except those relevant to their ministries.
Turning to the association’s set of recommendations, Kachaje said there is no doubt that the Farm Input Subsidy Programme (Fisp) has had a positive impact on food security, despite the burden on the national budget is unsustainable.
He said there is need for government to systematically start reducing the level of subsidies and seeking a higher contribution from the beneficiaries.
On the review of ministerial perks, Kachaje said there are many allowances that might not be justified in an economy of Malawi size, citing 1 000 litres of fuel per month as not a prudent expenditure per Cabinet minister.
Secretary to the Treasury Newby Kumwembwe, who presided over the function on behalf of Gondwe, said Ecama submissions, among other inputs, would form an important input into the 2014/15 budget proposal to be tabled later during the year.
