The Malawi Local Government Association (MALGA) has warned that persistent delays and cuts in funding from the central government are undermining local councils’ ability to deliver essential services, even as the proposed 2026–2027 national budget offers hope for fiscal decentralisation.

The warning comes in MALGA’s third-quarter report on fiscal space for local governments (October–December 2025), which states that delayed disbursements and funding cuts continue to weaken the budget credibility of local authorities.

The report highlights that many councils did not receive full funding for critical areas, and some allocations were carried over from previous quarters without being released.

MALGA Executive Director Hadrod Mkandawire said councils received only about 55 percent of expected transfers during the quarter, with recurrent funding particularly low.

"If these gaps persist, they could derail political momentum toward meaningful fiscal devolution and dampen community expectations," said Mkandawire.

He added: “Critical budget lines, including road rehabilitation, infrastructure development, borehole drilling, and hospital rehabilitation, were not funded at all. This trend poses a credible threat to service delivery at the local level.”

Reacting to the findings, Willy Kambwandira, Executive Director of the Centre for Social Accountability and Transparency (CSAT), said MALGA’s concerns are legitimate, and government must act decisively.

However, Kambwandira said "with the national budget already presented, there is little room for hope this financial year.”

Both MALGA and CSAT are urging the Ministry of Finance and Economic Affairs to ensure timely and full release of budgeted allocations to local councils.

“Continued funding gaps risk undermining public trust in local governance and slowing down Malawi’s decentralisation reforms,” Mkandawira stressed.