Malawi economic crisis: Govt lowers budget

Feb 27, 2016 Politics 25
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Goodall Gondwe and Peter Mutharika

The withdrawal of donors has caused pain for Malawi as government has been forced to adjust the budget downwards due to a decrease in local revenue collection.

Presenting the midterm budget statement in Parliament on Friday, finance minister Goodall Gondwe proposed that Members of Parliament should approve an adjusted budget since government did not meet its revenue collection targets.

In June last year, Parliament approved a K927.9 billion budget which was to be locally financed but Gondwe on Friday proposed that it should be reduced by K23.7 billion so that it should now be  K906 billion due to under-collection of revenue.

Goodall Gondwe and Peter Mutharika
What should we do? Gondwe seems as asking Malawi President, Peter Mutharika. (Library).

He said total revenue and grants that were targeted at K386.1 billion at the end of the first half of the 2015/16 financial year were under-collected by K50.8 billion while domestic revenues that were targeted at K312.4 billion fell short by K12.7 billion down to K299.7 billion.

According to Gondwe, some taxes performed well but the VAT underperformed considerably by an amount of K5.6 billion. He added that grants performed even worse where the target of K75.3 billion was underperformed by K36.5 billion, less than half the targeted amount.

Gondwe however urged the parliamentarians to help government in exploring more ways of increasing local revenue collection so that the country should become progressively, more self-sufficient in budgetary matters than has been the case so far.

“There is therefore need to strengthen our effort at raising domestic revenues and to downplay all donor grants in general and only expect to focus more on development loans from donors as a reliable mode of donor aid delivery,” said Gondwe.

The minister of finance also insisted that the budget is not zero-aid since government “will expect a sizable amount of dedicated and project grants.”

He said “bilateral donors only formally withdrew from budgetary support (programme grants)” but the donors including multilateral institutions “are increasing their off budget support massively.”

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25 Comments

  1. Gondwe dont keep on wasting time and bruffing Malawians on your personal businesses. You dpp thieves opened your private and secret bank where you are keeping that K553 billion Kwacha you looted from government coffers during your past regime. May l please, ask your dpp administration to remburse that K553 billion kwacha back so that it can be used for intended purposes. Dont bother about the interests you have made from it, that is yours,bring that, add to your budget. Otherwise, Malawians are double kicked off in a sense that you impose heavy and unbearable taxes on anything yet in return , only dpp thieves benefit from it. leaving people dying in hospitalsof hunger, drug shortages, power water etc.

  2. Gondwe dont keep on wasting time and bruffing Malawians on your personal businesses. You dpp thieves opened your private and secret bank where you are keeping that K553 billion Kwacha you looted from government coffers during your past regime. May l please, ask your dpp administration to remburse that K553 billion kwacha back so that it can be used for intended purposes. Dont bother about the interests you have made from it, that is yours,bring that, add to your budget. Otherwise, Malawians are double kicked off in a sense that you impose heavy and unbearable taxes on anything yet in return , only dpp thieves benefit from it. leaving people dying in hospitalsof hunger, drug shortages, power water etc.

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  4. They hv withdrawn their donation so y clinging being here,amalawi timazunzika kunjaku kma ena tmawasamala bwno kuposa nzika zathu zomwe.

  5. (I HAVE A MIRACLE TESTIMONY TO SHARE WITH EVERYONE)
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  9. Goodall Gondwe you know why your government has undercollected? It’s because you discouraged small scale crossborder traders with your high duty rates. If for example I import 100 pkts of jiggies , I pay twice as much as the buying price in duties. In this type of taxation one hardly realises any profit. This has led to many traders being put off.

  10. [READ MY STORY. ON HOW I GOT MY HIV CURED].
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  11. [READ MY STORY. ON HOW I GOT MY HIV CURED].
    Truthfully, i was tested HIV + positive for the past 8 years. I keep on managing the drugs i usually purchase from the health care agency to keep me healthy and strengthen, i tried all i can to make this disease leave me alone, but unfortunately, it keep on eating up my life, this is what i caused myself, for allowing my fiance make sex to me unsecured without protection, although i never knew he is HIV positive. So last Two Months i came in contact with a lively article on the internet on how this Powerful Herb Healer get her well and healed. So as a patient i knew this will took my life one day, and i need to live with other friends and relatives too. So i copied out the Dr Collins the traditional healer’s contact and I contacted him immediately, in a little while he mail me back that i was welcome to his Herbal Home whereby all what i seek for are granted. I was please at that time. And i continue with him, he took some few details from me and told me that he shall get back to me as soon as he is through with my work. I was very happy as heard that from him, as i was just coming from my friends house, Dr Collins called me to go for checkup in the hospital and see his marvelous work that it is now HIV negative, i was very glad to hear that from him, so quickly rush down to the nearest hospital to found out, only to hear from my hospital doctor called Browning Lewis that i am now HIV NEGATIVE. I jump up at him with the a test note, he ask me how does it happen and i reside to him all i went through with Dr Collins. I am now glad, so i am a gentle type of person that need to share this testimonies to everyone who seek for healing, because once you get calm and quiet, so the disease get to finish your life off. So i will advice you contact him today for your healing at the above details: Email ID: [email protected] or you can also add him up on whataspp +2349036950737. CONTACT HIM NOW TO SAVE YOUR LIFE AND DOCTOR ALSO CURE ALL KIND OF DISEASE AND SICKNESS: [email protected] AS HE IS SO POWERFUL AND HELPFUL TO ALL THAT HAVE THIS SICKNESS…

  14. Malawi will only improve if these greedy polititians will dvelope a helping heart and agree to help the solve of problems, otherwise Malawi will never be a better place to stay coz boma lathu udachuluka ndi umbava komanso kudzikonda. Why cnt we ask ourselves to say why is it that all these countries we’re sorrounded with are much better than our small Malawi? Or ifeyo zimativuta patii??

  15. Malawi will only improve if these greedy polititians will dvelope a helping heart and agree to help the solve of problems, otherwise Malawi will never be a better place to stay coz boma lathu udachuluka ndi umbava komanso kudzikonda. Why cnt we ask ourselves to say why is it that all these countries we’re sorrounded with are much better than our small Malawi? Or ifeyo zimativuta patii??

  16. Kkkkkkk amalawi tili ndi vuto timakomenta motukwanà monyoza mmalo moti tipelekepo nzeru zathu kuti zinthu zisinthe koma kutukwana it means we r useless pipo

  19. Donars, donars,Aids, Aids mpaka pano zaka 52 mwalephera ndithu kutsogolera a Malawi.
    Ngakhale maiko otengera ufulu mumbuyomu akuimirira paokha tsopano, Kodi chakuvutani nchiani inu atsogoleri opanda vision?

  22. so whats up next, are we going to decrease our marginal utility. but we know that domestic borrowng is cheaper compared to internation koma we ar fancng problems in the revenue collection side n domesticaly we cnt borrow due to our narrow resource base

  23. donors or no donors Malawi will be the same unless all this greedy leaders can die today ……….God continue to bless Malawi, ur only the best donor we have.

  24. We have enough money in malawi ,the money is in Thieves hands.Recently China and Japan has given billions, where is the money ? and where is 156$m,and where is 577bn.?

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