Africa-Press – Malawi. Malawi’s public debts have jumped from MK10.6 trillion to MK12.56 trillion following the reckless and useless 44% devaluation of the Kwacha. This has raised an alarm on how the debts are being used by President Lazarus Chakwera’s Tonse Alliance government, three years in power.
Finance Minister Simplex Chithyola Banda revealed in the 2023/2024 Mid-Year budget review statement on Monday, November 2023 in Malawi Parliament. Banda also disclosed that the fiscal plan has been revised to MK4.33 trillion from MK3.79 trillion with a total expenditure of MK2.02 trillion.
He says the budget deficit in the first half was seen at MK569.79 billion against a budgeted deficit of MK737.82 billion. Banda added that the total budget deficit will widen from MK1.24 trillion to MK1.28 trillion or 8.3 percent of the GDP.
The minister however disclosed that in the aftermath of the International Monetary Fund (IMF)’s Extended Credit Facility (ECF), Malawi is to get 80 million dollars in budget support from the World Bank, 30 million dollars from the African Development Bank, and 60 million Euros from the EU.
Chithyola Banda says cumulatively, Malawi will get US$240 million in support from partners. According to Chithyola Banda wages and salaries have gone up by MK80.05 billion from K900.44 billion to K980.49 billion.
The finance minister says the provision of interest payment has gone from MK16.62 billion to MK931.48 billion in the wake of the devaluation. Chithyola Banda says the move to cut the fuel allocations by top government officials has resulted in a saving of K4.2 billion, which will be used for megafarms.
The Finance Minister says funds for maize purchase have been maintained at MK12 billion, but that the World Bank has pledged US$20 million (MK34 billion) towards the cause.
According to Chithyola Banda wages and salaries have gone up by MK80.05 billion from K900.44 billion to MK980.49 billion. The finance minister says the provision of interest payment has gone by MK16.62 billion to MK931.48 billion in the wake of the devaluation.
Chithyola Banda says the move to cut the fuel allocations by top government officials has resulted in a saving of K4.2 billion, which will be used for megafarms. Minister of Finance Simplex Chithyola Banda says inflation will average 29 percent in 2023 before coming down to 27.1 percent in 2024.
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