Africa-Press – Malawi. The Constituency Development Fund (CDF) has claimed the largest portion of the K178 billion allocated to local councils for the 2025- 26 financial year, according to figures released by the National Local Government Finance Committee (NLGFC).
Out of the total central government transfers to councils, K42.4 billion, representing 24 percent, has been earmarked for CDF, making it the highest single allocation among all budget lines.
The Roads Rehabilitation Fund follows with K35 billion (20 percent), while the Education and Health sectors have been allocated K26.2 billion (15 percent) and K23 billion (13 percent) respectively.
But the heavy focus on the CDF is raising alarm among governance experts.
Willy KambwandiraCentre for Social Accountability and Transparency (Csat) Executive Director Willy Kambwandira has warned that the increasing dominance of CDF over other local government funding mechanisms such as the District Development Fund poses threats to effective local governance and development.
“This trend undermines the authority and autonomy of local councils and decentralisation efforts as a whole.
“Considering the increased reports of CDF abuse by some Members of Parliament, this situation exposes millions of taxpayers’ money to potential misuse,” Kambwandira said.
He revealed that in just the past two months, Csat has received over 300 complaints related to CDF through its toll-free line.
These include reports of abandoned projects, unpaid labourers and substandard construction works.
“To mitigate this situation, there is an urgent need for robust accountability mechanisms and stronger community involvement. Just like other funding streams, the disbursement of CDF must be tied to performance indicators,” Kambwandira said.
Meanwhile, NLGFC says the budget publication aims to promote transparency in public financial management by providing insights into allocations by sector, focusing on Operational Resource Transfers and Development Budgets.
Hospital infrastructure is also set for significant investment, with K18 billion (10 percent) allocated to the Hospital Rehabilitation Fund.
Other notable allocations include the District Development Fund (K7.8 billion), General Resource Fund (K7 billion) and the ‘Rest of Devolved Sectors’ fund (K7.1 billion)—each receiving four percent of the budget.
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