Budget suspension may plunge in fiscal crisis—Atupele

Malawi opposition United Democratic Front (UDF) president Atupele Muluzi has warned that the Common Approach to Budgetary Support (Cabs)suspension to the national budget risks plunging the country into deep financial crisis which may also erode the gains made since 2012.
Addressing the press in the commercial city, Blantyre, Atupele said the suspension poses serious challenges to the implementation of the budget for the next eight months.
“It means there will be huge gaps in the public purse. It will not be possible to run government with such a huge gap. This calls for tough choices and decisions,” said Atupele.
He asked the Executive to consider cuts on internal and external travels and other allocations so that government business does not grind to a halt.
“Government must make a statement on this matter, especially with regards to implications on the national budget.
“Government should involve Parliament in this process and during the current sitting the Minister of Finance should also inform the House where cuts are going to be made to finance government business,” he said.
Atupele feared that the aid suspension support will affect the electoral calendar because a huge chunk of financial resources are financed by the donors.
He observed that the suspension of budgetary support shows that government has not shown enough commitment to dealing with issues of financial mismanagement fearing that the consequences will be felt even after May 2014.
He called on the administration of President Joyce Banda to bring to book all suspects in the Capital Hill cash-gate and take immediate action to restore Malawi’s lost credibility.