Mlusu Presents First Tonse Alliance Financial Plan Pegged at MK2.109 Trillion
Minister of Finance, Felix Mlusu Friday presented a K2. 190 trillion financial plan for the 2020/21 fiscal year.
The budget has seen wages and salaries getting the lion’s share of the financial appropriation plan at K523 billion kwacha.
The key sector of education is second on the top earners in the budget at K384 billion, which is 21 percent of the total budget. Education is followed by interest rate repayment at K376.0 billion.
Agriculture which is the backbone of Malawi’s economy has been given K354 billion, representing 19 percent of the total budget.
Health sector which is critical in the fight against Covid-19 has received K204 billion, representing 11 percent of the total budget.
Transport sector has been allocated K150 billion, representing 8 percent of the total budget while Energy has received K 57 billion, representing 3 percent of the total budget.
The financial plan has projected 511 billion kwacha as a development budget of which 410 billion kwacha is foreign-financed and 100 billion kwacha is domestically financed projects.
The Tonse Alliance economic blueprint has also projected economic growth in 2020 at 1.9 percent and in 2021 at 4.5 percent.
Finance Minister, Mlusu has also increased allocations to the Anti-Corruption, Office of the Ombudsman, Director of Public Prosecution, Fiscal Police, and Financial Intelligence Authority which is now at 52. 8 billion kwacha.
Mlusu has also allocated 10 billion kwacha for maize purchases to restock the country’s strategic grain reserves.
The finance minister however says the Tonse Alliance’s inaugural financial plan will be difficult to implement due to COVID 19 which has drastically reduced monthly revenue collections with 11 percent.
Meanwhile, Members of Parliament have retreated to various clusters for thorough scrutiny of the budget before passing it.