Analysts caution government over spending
Analysts have cautioned government to tread carefully on spending and accountability following Parliament’s Friday approval of a K210 billion (US$51 094 890) provisional budget presented by Finance, Economic Planning and Development Minister Goodall Gondwe.
Opposition parties, while supporting the provisional budget on Friday, expressed reservations that the move was a blank cheque to the Minister of Finance to spend willy-nilly and decried the absence of a National Budget.
However, in separate interviews yesterday, governance analysts welcomed the development, describing Gondwe’s move as a necessity stemming from an emergency situation.
Institute for Policy Interaction (IPI) executive director Rafiq Hajat said the move was welcome as government could collapse in the absence of funding. He said the new administration had inadequate time to formulate a provisional budget.
Said Hajat: “It’s a rational move; government had to use the doctrine of necessity. Government cannot afford not to spend, it will collapse. It appears this is an emergency provision. The new government had inadequate time to prepare a budget. Now this is an opportune time for government to get its act together and formulate a sound budget.
“The opposition is in majority so Parliament has no excuse not to exercise oversight on government expenditure.”
Catholic Commission for Justice and Peace (CCJP) national coordinator Chris Chisoni agreed with Hajat, saying while the move was constitutional, there is need to increase oversight to avoid a repeat of massive abuse of government resources.
“The K210 billion approved is less than 30 percent of the previous budget as stipulated by law, but we need to ensure that there is transparency and accountability in the way it is spent.”
Chisoni added: “I would like to believe this money will be used through the normal government structures so what is important is that there is proper scrutiny on how the funds are managed.
“This is a new government; lets give it the benefit of doubt but indeed there are fears after cashgate that we need all players to be cautious so that we avoid another cashgate or jetgate.”
With a majority of western donors freezing crucial budgetary support following the Capital Hill Cashgate, newly-elected President Peter Mutharika announced during his maiden State of the Nation Address that government will delay the 2014/15 National Budget until September.
Gondwe on Friday further told Parliament budget formulation was severely hampered by prolonged talks with the donors and heavy debts incurred from the last financial year.
“This year there is need to take particular care in preparing the budget in view of a difficult and confused financial situation that confronts the government. There is an accumulation of unpaid bills amounting to K158.5 billion and a domestic debt of K340 billion that has been left behind,” said Gondwe.
