Economic analysts have commended government for increasing funding to critical social sectors, despite lingering concerns over the prevailing slowdown in the economy.
In the 2024/25 Mid-Year Budget Statement presented before Parliament on Monday, Minister of Finance and Economic Affairs Simplex Chithyola-Banda announced upward adjustments in funding to key sectors such as education, health, and gender development.
The move comes as part of efforts to bolster social services while grappling with the country’s challenging macroeconomic conditions.
The Ministry of Education received the largest adjustment, with funding increased by 2.2 percent, from K338.4 billion to K345.8 billion. The Ministry of Health’s allocation rose from K342.5 billion to K345.1 billion, representing a 0.76 percent increase.
Meanwhile, the budget for the Ministry of Gender, Community Development, and Social Welfare saw a marginal rise of K300 million, reaching K6.4 billion, a 0.53 percent increment, while the Ministry of Water and Sanitation has its budget raised to K202.23 billion from K202.05 billion
These allocations underscore government’s prioritisation of human capital development and social welfare, even as austerity measures necessitated cuts in other areas amid such economic performance.
Reacting to the allocation changes, Economics Association of Malawi (Ecama) president Bertha Bangara-Chikadza highlighted the potential benefits of the increased funding for education and health.
“Increased funding for education and health could enhance access to quality services, reduce morbidity, and boost productivity,” she said in a WhatsApp response. “Furthermore, greater investments in gender equality and water and sanitation will help empower marginalised communities, fostering inclusive development.”
In a separate comment, Scotland-based Malawian economist Velli Nyirongo noted that the increased funding aims to enhance service access, strengthen workforce capacity, and improve living standards.
He also commended the increased allocation for gender initiatives, describing it as “a positive step towards empowering women, unlocking their economic potential, and fostering inclusivity.”
But experts have cautioned against complacency in the implementation of these reforms. Civil Society Education Coalition executive director Benedicto Kondowe urged government to exercise diligence, citing historical challenges that have hindered progress in the social sectors.
“Persistent challenges in execution and timely disbursements frequently undermine growth and efficiency in these sectors, limiting their capacity to drive sustainable development,” Kondowe said.
