Mlusu presents an inclusive budget

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive
 

By Capital FM 

 Finance Minister Felix Mlusu has presented a K2.2 trillion proposed National Budget for the 2020/2021 financial year.

 

This is the first full national budget for the Tonse Alliance administration which came into power in June this year.

 

In the proposed budget the education sector has been allocated the lions share with K384.5 billion, seconded by the agriculture sector with K354.8 billion.

 

Other sectors that have been allocated highly, are health at K204.7 billion and K57.8 billion towards energy.

 

“Allocations in this Budget are in line with priorities outlined in the national development blueprint, the third Malawi Growth and Development Strategy,”Mlusu said.

 Economic Association of Malawi ECAMA has since described the proposed financial blueprint as inclusive.

 

“They have tried to address different areas and target different categories of people,  and they are  trying to pursue stable macroeconomic policies, which means we are assured of stability in interest rate, inflation and exchange rates, ” said Lauryn Nyasulu President of ECAMA

 

The economic think tank has however cautioned government on financing of the budget.

 “I must emphasize here that these interventions that are being pursued also pose a challenge on the fiscal framework of the budget, so it is a huge challenge for the government to be able  work around to see how best they are going to finance these programs  to ensure that this budget is well implemented,” Nyasulu stressed.

 

Out the proposed total expenditure of the budget, K511.2 billion is earmarked as the development budget, coming slightly under the wage and salaries allocation of K527 billion.

Other commentators have described it as a consumption budget considering the amount that is accounting for recurring expenditures.

 

The themed Living the Promise, the financial blueprint also comes as a test for the Tonse Alliance administration on fulfilling its campaign promises.

 

So far the promises fulfilled include the increase of the tax free band to K100 000 from K45 000 and the affordable fertilizer.

 

The government has allocated K160.2 billion towards the new agriculture subsidy program, the Affordable Input Program-AIP.

 

The Tonse Alliance government promised Malawians to provide universal fertilizer to replace the Farm Input Subsidy Program-FISP.

 

At least 4.2 million farming households are expected to benefit from the new agriculture subsidy program.

 

“Under the Tonse Alliance Government, the 2020/2021 budget will focus on: achievement of sustainable and inclusive growth; macroeconomic stability; and sound financial management, these are some of the promises that the Tonse Alliance made to the people of Malawi,”Mlusu said.

 

The Finance Minister has also disclosed that the government has introduced various measures to ensure transparency and accountability in the implementation of the proposed financial plan.

 

Legislators will from next week start meeting in clusters to scritnise the proposed financial plan.

 

 

 

PHONES:
BLANTYRE
MAIN NUMBER +265 1875400
NEWSROOM +265 1873067

LILONGWE +265 212251272