2023/24 PROPOSED BUDGET: Opposition demands realistic budget, describes it as the worst budget ever

By Lovemore Khomo

On Thursday afternoon, Minister of Finance Sosten Gwengwe has presented 2023/24 national budget pegged at K3.87 trillion in the National Assembly. The proposed budget represents 25.5% Gross Domestic Product-GDP, where K2.9 trillion is recurrent and K896 billion estimated to be development budget.

The Education sector has got a lion’s share of K603 billion, while Agriculture has K455 billion and Health sector has K330 billion.

During his presentation, Gwengwe explained that total debts as of December 2022 had reached to K7.9 trillion while K4.4 trillion is domestic debts.

Due to the rise in debts, economic experts and social commentators have expressed concern over continued unprecedented levels of borrowing by Government.

Commenting on budget statement DPP Spokesperson on Finances Ralph Jooma describes it as ‘the worst budget ever this country has ever had.’

Jooma has expressed concern over its failure to address current challenges that Malawi is going through.

“Budget is thin to address numerous challenges Malawi goes through. For example, it does not cover how it will deal with electricity challenges and improvement on tax collection. Also, it does not talk about promotion of exports and imports. And this is a lost opportunity for Malawi to increase its wealth.”

Head of Delegation of the European Union to Malawi Rune Skinnebach said there are other good elements in the budget, such as the promotion of direct investments that attracts foreign investors.

“But is it enough, no. I think we need a framework to make Malawi be a more attractive place for investments.” Skinnebach said adding that implementation is key than presentation.

On his part, Economics Association of Malawi-ECAMA Executive Director Frank Chikuta suggests that the country should move towards making investments in multiple sectors to ensure sustainable growth of the economy.

Center for Human Rights and Rehabilitation – CHRR Executive Director Michael Kaiyatsa said was unhappy with “low allocation to the health sector, unmentioned construction of houses for people with albinism, the elderly and other social supports.”