Chairperson of Budget and Finance Committee of Parliament has punched holes in Mid Year Budget Review describing it as mix bag following good and bad estimates government has presented to Parliament.
Speaking in Parliament on Monday, Novermber 28, 2022, Ganda says her Committee commends government for reducing domestic borrowing from K73 billion which is 11.2% decrease from K654 billion to K581 billion though it is still on the higher side but reducing development expenditure from K818 billion to K626 billion which represents 23.1% decrease makes the budget more consumptive than developmental.
The Committee has also taken a swipe at government stance to increase the allocation of State Residences from K14 billion to 19 billion, OPC from 22 billion to 29 billion and the Ministry of Information from K10 billion to 22 billion amidst economic hardships where most government projects are on deathbed due to lack of funding.
“Furthermore, in the analysis of top 10 losers, the Committee noted that allocation towards some productive votes have been reduced. For instance, allocation towards Ministry of Energy has been reduced amidst poor energy supply. Infrastructure progress may also be hampered by the cut in Ministry of trade and public works and roads fund administration,” said Ganda who is MP for Nsanje Lalanje Constituency.
The Budget and Finance Committee has also advised government through the Minister of Finance Sosten Gwengwe the following measures to be taken on board if the economy is to rebound, some of the recommendations are that the Committee is imploring Government to confirm the validity of growth figures and tally them with the World Bank and IMF’s projections.
The Committee has also called upon for the Monetary Authorities to put in place more strategies to combat this alarmingly rise in inflation besides increasing the policy rate. It also advises the the Minister of Finance to update the House on the current import coverage and calls for the Minister of Finance to give a detailed update on the implementation status and impacts of the austerity measures.
Ganda further says her Committee has advised government to provide a comprehensive plan as to how it intends to turn around performance of the non-tax revenue, especially in the remittance of parastatal dividends and that government should ensure that it follows up closely on the implementation of projects so that challenges along the way are handled right away before missing timelines thus impacting on disbursements of grants and uptake of development expenditure among others.
