Expert commends Tonse for continuing DPP era projects

An economic expert has commended the Tonse Alliance Government for focusing on continuing projects initiated during the Democratic Progressive Party (DPP) administration.

The expert, Dr. Thomas Chataghalala Munthali, who is also Director General of National Planning Commission (NPC) said this in his analysis of the 2020/21 national budget.

He noted that existing projects such as roads, energy projects, water projects and in-door netball court have been given funds in the budget.

“Actually they have picked on those with high likelihood of generating further incomes/wealth in the medium-term or those that would promote inclusive growth. Continuity of development programmes and policies is key for predictability of investment environment and meaningful impact of development plans. This is actually the spirit behind formation of the National Planning Commission,” said Munthali.


He also observed that the whole budget statement is aligning to Malawi Growth and Development Strategy (MGDS) III priorities picking on few but those areas with high likelihood of impact.

Munthali further applauded the Tonse government for not fronting all its promises in the first fiscal year

In the budget, the Tonse Alliance has delivered on promises to provide cheap fertilizer and increase the Pay as You Earn zero bracket from MK45,000 per month to MK100,000 per month.

However, the government has not reduced passport fees or removed utility connection fees, which are popular promises of the Tonse Alliance.

On tax measures, Munthali said the tax policy measures have been well thought-through as there are generally no tax increases in recognizing the tough environment that businesses are operating in currently. According to Munthali, this will allow business to recover and grow.

Munthali also commended the measure on prioritising procurement of uniforms for public officers from local producers.

He said: “This will stimulate production and empower locals to create wealth and more jobs as well as save forex as a country. This am sure will also apply to engaging local consultants not foreign ones unless there is strong justification otherwise.”