The Budget and Finance Committee of Malawi Parliament on Tuesday added its voice to concerns over the over-expenditure and bloated financial plan allocation to State residences despite its poor showing in last year’s blueprint.
The current statement has had its allocation increased by almost 99 percent in the proposed 2013/14 budget.
In her response to the budget statement, chairperson of the committee, Eunice Napolo, said although the committee was pleased with some allocations, it was concerned about increases in some votes such as those of State residences, vice-presidency and for internal travels.
She said although such votes have been given huge allocations, they are not part of the Malawi Growth and Development Strategy (MGDS) priority areas nor any of the Economic Recovery Plan (ERP) thematic areas.
Napolo observed that the State residences vote has had a 99.4 percent increase with its budget moved from K1.8 billion (about $4.5m) to K3.675 billion (about $9.2m) while the vice-presidency has a 96.56 percent increase from K301 million (about $752 500) to K592 million (about $1.4m).
“Other examples include the huge increases to internal travel from about K15 billion (about $37m) to K30 billion (about $75m), which represents an increase of close to 108 percent. One wonders if this signifies living within the spirit of austerity,” she said.
She also registered concerns over the K34 billion (about $85m) forecast deficit in the 2013/2014 budget, which Minister of Finance Ken Lipenga said will be financed by external borrowing.
Napolo also pointed out that the new Pay As You earn tax-free band of K20 000 (about $50) was still narrow to cushion more lowly paid workers.
Napolo said instead of giving tax reliefs to “wealthy” businesses, government could have achieved a lot if the tax-free band could have been put at K40 000 (about $100) as recommended by many stakeholders.
Opposition Democratic Progressive Party (DPP) spokesperson on finance Fraser Nihorya said before the budget is approved, it would be appropriate that Lipenga explains in detail the over-expenditures in State residences, which during the 2012/2013 budget were reported to have blown up its annual allocation within six months.
“Similar accountability statements must be made about Office of the President and Cabinet, Office of the Vice-President and Ministry of Foreign Affairs. I recommend that such details should be provided before Parliament rises,” said Nihorya.
United Democratic Front (UDF) spokesperson on finance Mahammad Lali also said extravagance if not controlled, expenditures incurred on both internal and external travel will hamper the implementation of the 2013/2014 budget.
He also advised government to check corruption, inefficiencies and lack of patriotism.
Yesterday’s deliberations were nearly derailed following a heated debate on the Nsanje World Inland Port after remarks from Nsanje Central MP Francis Kasaila, who wanted government to explain whether the project is still on.
His accusations on government over the port did not go down well with the government side with Minister of Information Moses Kunkuyu, Minister of Tourism Rachel Zulu and several other ministers standing up on a point of order.
However, it was Zulu’s remarks which angered Kasaila when the minister said: “I would want to educate the honourable member that the Nsanje Inland Port is not for the people of Nsanje alone, it is for the whole government of Malawi.”
Not amused by the term ‘educate’, Kasaila shot back: “There is no way that a Form Four dropout can educate a graduate.”
His statement attracted calls for withdrawal from some Cabinet ministers.
Second Deputy Speaker Julliana Mphande supported the call for the withdrawal, but Kasaila refused to withdraw demanding that the day’s Hansard should be brought into the House to see whether his remarks were demeaning to women as said by some of the members.
