MALGA lobbies government to bail out councils from debts


Malawi Local Government Association (MALGA) has appealed to government to make deliberate efforts in bailing out local authorities from debts in the 2023/24 fiscal year.

The request was made Friday in Mzuzu by Vice Chairperson of MALGA Finance Managers Network, Richard Chakhala during the 2023/24 Budget Consultation Meeting which was organized by Ministry of Finance and Economic Affairs.

He said local authorities are struggling because they face challenges in collecting local generated revenue thereby impacting negatively on public service delivery.

Chakhala appealed to government through the meeting to consider bailing the councils of the debts for improved service delivery, thereby reducing pressure on central government when it comes to national development.

Minister of Finance and Economic Planning, Sosten Gwengwe said he was impressed with  contributions towards the formulation of the budget and pledged that the inputs would be scrutinized.

“I am impressed by the proposed guiding budget parameters which will the scrutinized. You are going to know government position very soon through a proposed budget which will be presented in Parliament for approval,” he said.

On the call for government to bail out councils from debts, Gwengwe said that government could only assist the councils to get what public and private entities owe them.

“Government will need tax payers’ money to bail them out which is not practical,” he said.

Reported by George Bulombola

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