‘Malawi’s budgeted expenditure won’t be affected’

Finance Minister Dr Ken Lipenga has insisted that expenditures that were earmarked in the 2012/13 national budget will not be affected due to the delay by donors to disburse their budgetary support.

Lipenga has also expressed optimism that the funds that were committed by Malawi’s donors and were included in the national budget will be disbursed before the 2012/13 fiscal year ends.

“There’s a need for Malawians to know that the budget support which was factored in this year’s budget has not been cut. Expenditures that were earmarked for these funds will not be affected,” he said an e-mailed response to Business News this week:

Malawi receives a harmonised budget support from a group of donors under the Common Approach to Budget Support (Cabs).

But as the first quarter (July to September) draws to an end, only the African Development Bank (AfDB) and the World Bank have released part of the pledged budget support to Malawi.

According to Lipenga, AfDB and World Bank earlier indicated that they will disburse their budget support resources before the end of the first quarter.

“It should, therefore, be understood that so far everyone has disbursed according to timeframe that they indicated that they will disburse,” he claimed.

The Minister said he looks forward to the first Cabs review meeting to take place in October.