Economic experts in the country have called on the Government to abide by the advice given by the International Monetary Fund (IMF) on miscellaneous fiscal advices.
Economics Association of Malawi (ECAMA) Executive Director Henry Kachaje says there is a need to bring Fiscal discipline as the country’s economy is unsteady.
“There is a need to bring Fiscal discipline as the country is going through economic hardships and government must consider the advices given by IMF in order to recover the country’s economy,” said Kachaje.
He further said that IMF are the experts in financial management hence the need to consider their advice.
Kachanje added that our country is a fragile state as it is clear that there is no budgetary support and the economy is still facing challenges and the Fiscal discipline will make sure that the economy has a chance to recover.
At the moment Malawi is going through problems of high inflation and the depreciation of the Kwacha.
Recently, the IMF suspended the loan facility to Malawi in the current budget.
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.