F
ollowing discussions on the recently announced budget, Secretary to Treasury Betchani Tchereni has provided further insight into the adjustments made, explaining that funds were reallocated within existing votes to address key national priorities.
The clarification comes amid ongoing public interest in the sources of financing and the broader economic implications.
In his budget statement on Wednesday, Minister of Finance and Economic Affairs Simplex Chithyola-Banda outlined increases in several budget lines amounting to K52.2 billion, with an upward adjustment of K20 billion.
This created a K32.2 billion shortfall, prompting questions about the funding mechanism.
But in an interview, Tchereni said there is no real change in the value of the votes.
“What we did in the budget was to move funds within votes and direct them to areas where we felt there was a need,” he said.
To address the financing gap, Tchereni said government would borrow, primarily to support capital expenditures.
“We prioritise borrowing for activities that will add value and potentially generate returns rather than for consumption,” he said.
The ST further pointed out that some budgetary reallocations were influenced by shifts in global funding trends, citing reductions in international support, including changes in United States Agency for International Development (USAid) funding to Malawi’s health sector.
“We still need to support persons living with HIV and strengthen the education sector using local resources,” said Tchereni.
While the adjustments aim to maintain essential services, stakeholders continue to assess how domestic resources can effectively complement shifting donor priorities.
Of the K52.2 billion, K23.4 billion or 45 percent of the extra funds have gone to the Ministry of Health, which is the biggest loser of the USAid cancellation.
Among the areas receiving increased funding is aquaculture, with an additional K1 billion allocated under the Ministry of Agriculture vote to boost local fish production.
In an interview, National Working Group on Trade Policy chairperson Fredrick Changaya urged local authorities to stick to the implementation strategies developed and financed in the 2025/26 National Budget to ensure that the resources generate a return on investment.
“Malawi has strong policy ideas, but execution remains a challenge. Ensuring adherence to programme strategies is critical to achieving the intended impact,” he said.
