Finance Minister Dr Ken Lipenga announced in Parliament Friday that the 2012/13 budget had been revised upwards from the initial K 408.4 billion to K475.8 billion, representing a 16 percent rise.

This indicates that government has in the first half of the 2012/13 financial year failed to contain expenditure within the budgetary ceiling despite Dr Lipenga’s statement that the budget was on track.

“Total expenditure and net lending are projected to rise from the approved budget estimates of K408.4 billion to K475.8 billion. Recurrent expenditures are expected to increase from the original estimates of K332.2 billion to K 381.3 billion,” said Lipenga.

He further said development budget expenditure are expected to increase from K76.2 billion to K 94.5 billion.

Dr Lipenga attributed the upward revision in the budget to pressure on some key expenditure lines during the first half of the financial year.

This further means that the 49 per cent loss in the value of the currency, the kwacha, effected in May 2012 is at play.

Dr Lipenga further said domestic revenue has also been revised upwards due to revisions in the growth projections, exchange rate and inflation and efficiency gains in tax administration system.

“Domestic revenues have been revised upwards to K278.9 billion from MK 270.4 billion approved in the Budget. The revised targets comprise K243.8 billion tax revenues and MK35.1 billion non tax revenues,” he said.

Reacting to the statement in an interview with Zodiak Online outside Parliament Malawi Congress Party - MCP - spokesperson on financial matters Joseph Njovuyalema rated the finance minister’s statement as empty.

He said the mid-term budget statement does not give a true reflection of the economy, against most people’s expectations.

“The statement is not revealing the reality on the ground. It is not even revealing how the budget has performed, in simple words I can say it lacks clarity,” he said

Parliamentarians are expected to start scrutinizing the mid-term budget statement next week Wednesday. Expectations are high that the opposition legislators will corner the finance minister.—Zodiak Online

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