Mixed Views on MK722 BN Provisional Budget

Joseph Mwanamvekha: Borrowing 209 billion kwacha domestically may be difficult due to Covid 19 pandemic Joseph Mwanamvekha: Borrowing 209 billion kwacha domestically may be difficult due to Covid 19 pandemic

The first provisional budget for Dr. Lazarus Chakwera’s administration has drawn mixed reactions with some seeing it as feasibility while others say it is a tough ride for the new administration.

While pledging support to the new administration, the opposition DPP says some of the estimations in the budget are difficult to achieve.

The party’s spokesperson on Finance Joseph Mwanamvekha says, for example, borrowing 209 billion kwacha domestically may be difficult due to COVID 19 pandemic which has crippled industries.

“With the current economic situation, it is difficult for government to borrow such amount locally. On top of that, revenues have dropped due to closure of borders which are major sources of most Malawi’s revenue” said Mwanamvekha.

Economics lecturer at Polytechnic Dr. Betchani Tchereni has meanwhile, cautioned the new administration to tread carefully on domestic borrowing saying if not controlled it may only worsen the debt burden.

“Government should have told Malawians on why we are borrowing such amount. The new administration should avoid excessive borrowing because that is not healthy for our economy,” said Tchereni.

Finance Minister, Felix Mlusu is upbeat about achieving what is in the budget, saying measures have been put in place to achieve what is the budget.

“We have put in place measures to see why Malawi Revenue Authority (MRA) has been under collecting. Government however is optimistic that what we have in the budget come into fruition,” said Mlusu.

The 722 billion kwacha provisional budget has among others set aside funds for Affordable Inputs Program which will see 3.5 million households benefiting. It however does not contain any funds for the Covid-19 pandemic.

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Last modified on Wednesday, 01/07/2020

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