Chakwera faults zero—aid budget

Leader of opposition in Parliament Lazarus Chakwera yesterday said the concept of zero-aid budget (ZAB) as introduced in the 2014/15 National Budget is misleading Malawians because government will borrow K107 billion to finance the deficit.

Chakwera, who is also Malawi Congress Party (MCP) president, said this in Parliament in his response to the K742 billion budget Minister of Finance, Economic Planning and Development Goodall Gondwe presented in the House on September 2 2014.

He tore apart the ZAB, saying it promotes consumption and offers the working class who pay the majority of taxes little protection from the rising cost of living.

Said Chakwera: “We the people long for the day when we will see a government that believes that a budget is a tool for controlling its spending, not an excuse for uncontrolled borrowing. But, sadly, that day is not today.”

He described it as a “zero-trade”, “zero-paid”, “zero-shade” and “zero-grade” budget.

He added that people were looking forward to a zero-subsidy budget which would see government turn from consumption to production.

Chakwera also faulted the proposed borrowing from banks to finance the deficit saying they did not need help from government when they had been complicit in the theft of government resources dubbed Cashgate.

He said it was a “sick joke” for government to allocate less than 10 percent of the budget to the health sector below the Abuja Declaration recommendation of 15 percent.

While commending government for the 24 percent salary increment to civil servants, Chakwera reminded the Democratic Progressive Party government that they had promised to remunerate civil servants adequately if voted into office.

People’s Party (PP) spokesperson on finance Patrick Makina commended government’s proposal to reduce taxes and create employment opportunities for the poor.

United Democratic Front (UDF) spokesperson on finance Rashid Pemba hailed the introduction of cement and iron sheets subsidy, but asked government to carry out extensive studies to ensure the programme is sustainable.

The Budget and Finance Committee of Parliament is today (Thursday) expected to make its response on the 2014/15 National Budget.