Human Rights Defenders Coalition (HRDC) says the test of the proposed 2026/27 National Budget hinges on whether it advances rights-based development, strengthens social protection and delivers inclusive growth that ordinary citizens can actually feel.
Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha unveiled a nearly K11 trillion budget last Friday anchored on deficit cuts, revenue expansion and a sharp surge in development spending.
In its analysis on the budget signed by chairperson Michael Kaiyatsa and national coordinator Kelvin Chirwa, HRDC acknowledged Mwanamvekha’s concerns, including stagnant economic growth, persistent high inflation, foreign exchange shortages, and rising public debt.
It said Malawians have repeatedly heard similar assurances of macroeconomic stabilisation and economic recovery over the past decade under successive governments, with limited tangible improvements in their daily lives.
“The government is commended for introducing measures such as expanded social cash transfers, relief maize distribution, an allocation of K2 billion to the Disability Trust Fund, including K210 million in grants to persons with disabilities, and the K2 billion Youth Innovation Fund.
“The government is commended for interventions that have helped bring down the price of maize from around K100 000 per 50 kg bag during last year’s lean period to between K38,000 and K45 000. This has played an important role in averting widespread hunger and easing the immediate cost of food for many households,” it reads.
However, the HRDC said these interventions remain insufficient given the scale and intensity of the current cost- of-living crisis, noting that many Malawians continue to struggle to meet basic needs as the prices of essential commodities remain elevated.
On projections that government will save approximately K158 billion from austerity measures introduced during the 2025/26 Mid-Year Budget Review, it said collectively, they signal an intention to restore fisca discipline while creating fiscal space for investment in priority sectors.
These mea sures i n c l u d e reductions in travel expenditures, fuel entitlements, and embassy staffing, as well as a moratorium on the procurement of new vehicles and other high-value assets.
The K10.978 trillion package represents 34.8 percent of gross domestic product (GDP) and marks a 27.8 percent increase from the K8.589 trillion revised figure for 2025/26.
The proposed budget spending outlays is 30.2 percent higher than the allocation for 2025/26 and foresees a sizeable increase in development spending, which constitutes 30.9 percent of the total budget, a notable improvement from 20.9 percent in the financial year that ends on March 31.
