Economist commends govt proposal to donor partners
after signing of the recent loan agreement
Government has plans to let donors pay for some budget allocations directly, without passing through account number one, a development that has attracted a nod from some economists.
Responding to a questionnaire from The Nation executive director for Economics Association of Malawi (Ecama) Nelson Mkandawire said the move will cut down the red tape, bureaucracy, perceived corruption and may lead to fast service delivery.
“The approach entails that government thinks dealing with corruption in public system may take some time; hence allowing donors to take that route will enable us resume receiving development support that has been suspended for a while now, which is good news,” he said.
While economics professor from Chancellor College Ben Kaluwa welcomed the development saying it will alleviate pressure from government to borrow.
Kaluwa said government abuses resources leading to over expenditure and borrowing.
“It would help the economy if donors would do that,” he said.
Minister of Finance, Economic Planning and Development Goodall Gondwe said government plans to meet some donors within the week over the issue.
“We are saying that if a donor wishes to pay for example; drug allocation from the budget directly without passing through government’s account number one, we are ready to let them do so,” Gondwe said.
He said the development partners (whom he did not name) seem to be happy with the proposal.
Speaking during this year’s pre-budget consultations in Mzuzu on Saturday, Gondwe said government is struggling with aid suspension.
The initial budget figures indicates K43 billion support from European Union (EU), World Bank and African Development Bank(AfDB) with the full national budget is pegged at K743 billion.
