Goodall to stick to K1.2 trillion budget
Minister of Finance, Economic Planning and Development Goodall Gondwe has hinted that all things being equal, the 2017/18 National Budget set to roll out on July 1 would remain at K1.2 trillion like the present financial plan.
Speaking in an interview in Blantyre yesterday on the sidelines of the first in a series of pre-budget consultations, Gondwe said such would be the case because of improvements in the economic environment.
He said: “This year it seems we might have a relatively similar budget. What we would want to do this year is equate the domestic revenue with expenditure.
“We have priorities. What we will do is see to it that those places where these priorities demand more money, we increase the money and those areas which are less productive we decrease the money.”
The minister said government will consider suggestions made by stakeholders on key priority areas, including issues to do with climate change.
Said Gondwe: “We have been hit by climate change for two consecutive years and the result has been less food and rational water in some parts of the country therefore, when it comes to budgeting we would look into such areas so that we don’t confront the calamities unprepared.”
He maintained that the economy was on track, saying things were not as bad as some people have painted the picture.
During the consultations, Malawi Confederation Chambers of Commerce and Industry (MCCCI) chief executive officer Chancellor Kaferapangira complained that government does not consider most of the input from the private sector through the consultations.
He also blamed government for not providing feedback on budget implementation in recent years.
Said Kaferapanjira: “We would like to request that beginning this year, government starts becoming accountable in respect of results of budget implementation.”
Two weeks ago, the Reserve Bank of Malawi (RBM) reduced the bank rate or policy rate from 25 percent to 22 percent in reaction to the downward trend in the inflation rate now pegged at 16.1 percent as of February 2017 and the outlook of inflation rate projected to go down further to 14.2 percent by June this year.
On the other hand, Economics Association of Malawi (Ecama) president Henry Kachaje proposed that the budget should this time around focus on financing private sector-driven inclusive sustainable growth.
He said: “Our concern has been that the previous budget has focused more on social services which has been an issue taking into consideration that the last two years, the country has been faced by hunger. Nonetheless, we still need a vibrant private sector to take us through.”
