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Economists commend govt proposal to donor partners

Government is planning 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.

Economics Association of Malawi (Ecama) executive director Nelson Mkandawire told Business News in a response to a questionnaire the move will cut on bureaucracy, perceived corruption and may lead to fast service delivery.

Ben Kaluwa
Ben Kaluwa

“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.

University of Malawi’s Chancellor College economics professor Ben Kaluwa welcomed the development, saying it will alleviate pressure from government to borrow.

He 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 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,” he said.

Gondwe said some development partners, he did not mention, seem to be happy with the proposal.

Speaking during this year’s pre-budget consultations in Mzuzu last week, the minister said government is struggling with aid suspension.

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