Leader of Opposition Simplex Chithyola Banda has criticised the 2025/2026 Mid-Year Budget Review, arguing that the Democratic Progressive Party (DPP) administration has failed to build on reforms initiated by the previous Malawi Congress Party (MCP) government.
Responding to Finance Minister Joseph Mwanamvekha’s presentation in Parliament, Chithyola framed the review as a mixture of continuity, missed priorities, and policy reversals that, he said, undermine public welfare.
Mwanamvekha tabled the review in compliance with the Public Finance Management Act of 2022, which obliges the government to account for first-half budget performance and propose adjustments for the remainder of the fiscal year.
The statement reviewed a budget originally crafted under the MCP administration before the DPP’s September 2025 return to power.
Chithyola acknowledged that several policy directions carried forward, including diaspora engagement and revenue-expansion strategies, were inherited rather than newly conceived.
However, the Opposition leader’s main criticism centred on the government’s decision to suspend recruitment and promotions across the public service.
He argued that this freeze undermines livelihoods at a time when many Malawians are already grappling with severe economic pressures.
According to Chithyola, employment and career progression are critical drivers of disposable income and essential for sustaining household resilience.
He also faulted the government for imposing what he described as an excessive 17.5 percent increase in duties, a move he believes will translate into over-taxation of citizens facing rising living costs.
While acknowledging positive steps in areas such as mining oversight, an agenda he said MCP initiated, Chithyola warned that the burden of new tax measures may cancel out the benefits of these reforms.
Chithyola further noted the rise in the national budget from just above K8 trillion to around K8.5 trillion, questioning the fiscal logic behind increasing expenditure while the budget deficit continues to widen.
A sustainable solution, he argued, lies in aggressively expanding productivity rather than accumulating additional financial gaps.
He pointed to mining, agriculture, tourism and structured diaspora engagement as sectors with the potential to lift revenues and ease borrowing pressures.
Looking ahead, Chithyola announced that the Opposition will deliver a formal, comprehensive response to the budget on Monday.
He emphasised that the MCP’s long-term economic vision remains centred on restoring job growth and public-sector career progression.
If given the mandate in 2030, he said, the party would reinstate recruitment and promotion as part of a strategy to stimulate income, productivity, and overall economic recovery.
