DPP clings to Malata-Cement Subsidy

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Peter Mutharika

Malawi’s ruling  Democratic Progressive Party (DPP) has disclosed that it will maintain the Malata, Cement Subsidy Programme in the 2015/16 financial year despite suspension of a loan facility by International Monetary Fund (IMF).

IMF announced that they have banned a loan facility to Malawi due to overspending on the bills including subsidies.

“The extended credit facility is off-track because Malawi failed to meet set targets by end-June 2015,” said Oral Williams, the IMF mission head to Malawi.

Williams further said the country needed a budget review on the expenditures of the current budget arguing that Malawi exaggerated on the provision of a budget of over K900 billion.

Peter Mutharika
Mutharika: Hos govt sticks to Malata-Cement subsidy.

Minister of finance and economic planning Goodall Gondwe said the treasury is ready to revise the budget as demanded by the IMF.

“We welcome the observations from the IMF and we already planned to reduce the budget by cutting down on total expenditure during the mid-term budget review meeting of parliament in February next year,” said Gondwe.

However, DPP spokesperson Francis Kasaira said government will not drop the Malata, Cement Subsidy Programme despite the warning from the IMF.

“Our late president Bingu wa Mutharika once said, decent accommodation plays a big role to human beings. As a party we will maintain what is in our manifesto, so the Malata, Cement Subsidy will be implemented,” said Kasaira.

President Peter Mutharika launched the Decent and Affordable Housing (Cement and Malata) Subsidy Programme at Msampha 1 Village, T/A Chadza in Lilongwe.

According to a study by the University of Malawi, building costs in the country are higher when compared to other countries in Southern Africa.