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Budget under scrutiny

 

Opposition spokespersons on finance on Monday took turns to fault the proposed 2016/17 National Budget which Minister of Finance, Economic Planning and Development Goodall Gondwe tabled in Parliament, describing it as unrealistic.

The spokespersons observed that the proposed budget is favouring the rich while transferring the burden of financing it to the poor people it is supposed to protect.

Parliament resumed sitting yesterday afternoon after two weeks of cluster meetings to further scrutinise the budget.

The opposition used the time allocated to them to press Gondwe to explain how government intends to implement the budget when it failed Malawians in the 2015/16 financial year.

MCP spokesperson on finance Alexander Kusamba-Dzonzi said the K1.13 trillion 2016/17 budget was based on the wrong economic assumptions.

He said: “This budget is not realistic and not possible because in the budget framework there is no evidence that the K1.13 trillion budget will be implemented.”

However, the deliberations started in a confrontational form as members of Parliament (MPs), mainly from the opposition benches, sought government clarification on their conditions of service.

Mentioned high interest and lending rates: Chiphiko
Mentioned high interest and lending rates: Chiphiko

They threatened that they would take unspecified action if the clarification was not immediately provided.

Standing on a point of order, Kasungu North West member of Parliament (MP) Elias Wakuda Kamanga (People’s Party-PP) interrupted the business of the day—and demanded immediate fulfilment of their conditions of service, saying MPs can only debate the budget when they are “sober and celebrating”.

Apparently, MPs are not pleased with the supposed government decision not to give them loans as specified in their conditions of services.

But Speaker of Parliament Richard Msowoya told the members that there was no official communication from government on the matter and that the social welfare committee that was established to look into the matter has not presented their reports.

He then ordered Kusamba-Dzonzi to proceed with his response to budget.

“The budget is unrealistic script full of promises that never see light of the day and only promise hope to a poor and hunger stricken Malawian but never materialise into work,” said Kusamba-Dzonzi.

He added that in reality, the 2016/17 National Budget was less by 21 percent of the 2015/16 budget despite the current figures showing an increase. He said the inflation and exchange rates have eroded the real meaning of K1.13 trillion.

Dzonzi further said MCP was concerned over efforts enforced by ruling elites to administer security and defence in the country and called for increment of the K20 billion allocated to Malawi Defence Force (MDF) to K45 billion.

Kusamba-Dzonzi, who is also Dowa West legislator, said it was wrong for the Minister of Finance to come up with unrealistic targets for public tax collector Malawi Reveneu Authority (MRA) when he knew “pretty well that the economy is struggling”.

Taking his turn, People’s Party spokesperson on finance Ralph Jooma ripped off Gondwe’s budget, arguing the Finance Minister needed to first pronounce what they delivered from the 2016/17 budget.

Jooma said: “Good statements that never materialise into good work, good economic projections that never see the light of day, tax projections that never meet targets, budget allocations that are not adequately funded, and good development projects that stall at ground breaking point.”

He said in the 2015/16 budget, Gondwe projected that the economy would grow by seven percent but it only grew by three percent, and that the average inflation rate would be 16.4 percent but got worse to 21.8 percent, and that average exchange rate would be K400 to a dollar but it came out K730 to a dollar.

In conclusion, Budget and Finance Committee chairperson Rhino Chiphiko said looking at the concerns raised by spokespersons on finance from MCP and PP, it was difficult for him to believe that the budget will be implemented. n

 

Additional reporting by PRECIOUS CHILUNDU, Staff Writer

 

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