Budget is legal, Goodall trashes Malawi Congress Party criticism

Minister of Finance, Economic Planning and Development Goodall Gondwe has trashed opposition Malawi Congress Party (MCP) which labelled the proposed 2015/16 National Budget as an illegal document because it violates the provisions of the Public Finance Management Act and not backed by any current economic and fiscal policy.

Gondwe greets opposiiton leader Lazarous Chakwera (L) in parliament

Gondwe greets opposiiton leader Lazarous Chakwera (L) in parliament

MCP spokesman of finance, Dowa West MP Alexander Kusamba Dzonzi called the budget document illegal.

But In his winding-up speech on debate in parliament, Gondwe said the financial plan  followed all legal requirements.

“I would like to inform the House, that we published a report on the economic and fiscal position prior to the budget statement that was circulated in the House. I am sure that, among the many publications that were circulated at this time, a number of the Honourable Members may have misplaced some of their copies. I have a copy here with me and should anybody want to look at it, I will be able to supply them with a copy,” Gondwe said.

Gondwe explained that any Budget Statement since 1964, has a section that details the world and regional economic development and ends with summary of the economic developments in Malawi.

“We also publish and circulate the Economic Report among the budget documents, which contains detailed information on the subject. All these are made available to Honourable Members in order to report on how the economy has performed.

“Our forecast on the likely outturn of the economy during the fiscal year in question is in the form of assumptions that are intended to give the context within which the budget is being formulated. Mr Speaker, Sir, these have been done,” said Gondwe.

The Finance Minister said if MPs “patiently studied” the document and the statement, “they will surely conclude that all the legal requirements that he is referring to have been complied with as we do every year.”

He also responded to concerns by some MPs who said the budget is a consumption plan.

Gondwe said through the budget, he has managed to keep the development allocation at the internationally recommended 25 percent of the total budget.

The Finance Minister said the development expenditure was about eight percent, which is above the minimum of six percent of gross domestic product (GDP).

However, Gondwe promised to do better next year on the priority sectors such as tourism, trade and industry, mining and energy.

MPs are currently scrutinising the allocations vote by vote with no indication of dissent.

The proposed 2015/16 National Budget has increased from K901 billion (US$2 billion) to K930 billion (US$2.1 billion) pending approval by the House.

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M'doko
Guest

Tikufuna chipani cha dpp chitipatse k577billion apo bii dziko lioneka

kenkkk
Guest

The budget becomes legal when it has been approved in Parliament. For now your budget Goodall is illegal until approval is granted.

Balamanthu
Guest
A good budget as per should be made up of seven documents of which key is the fiscal strategy.In as much as Goodal claims to have a fiscal strategy, it is the type of strategy that does not take the country out of the mess it is in and seriously does not take into account the current situation where most of us are even failing to get bus fair to go to work or even enable an average malawian have at least two meals a day.Mumakhala kuti kumene mumapangira such useless fiscal strategies?.What do you aim to achieve and where… Read more »
Baba wa boy
Guest

When MCP said the budget is illegal because it does not have fiscal strategy document you agreed and said yes yes.

Now Gondwe has proved he did provide a fiscal report, but your MPs are so daft they though they had found a toilet paper, now you are finding fault with the strategy.

What is wrong with you people.

sunderstar
Guest
MCP is a personalised party it belongs to John Tembo and his cronies and they dont believe that anyone can rule this Nation. All their criticisms are baseless and without substance, they are the Party that put Malawi in this situation, Kamuzu Personalised every thing up to an extend of building several state residences to suit his western style taste, He build Kamuzu Academy without improving the education sector, he Built houses for a few ladies instead of improving the welfare of Malawian Rular. Blantyre was supposed to be a metropolitan city in this part of Africa but the developments… Read more »
bob mzunga
Guest

MCP has every right to oppose and criticise the 2015 budget. Goodall Gondwe does not have the monopoly of the best ideas to develop Malawi. We are where we are because a majority of malawians are hand-clappers, docile and accepts everything without questioning.

Damamoyo
Guest

Free education to the MCP Mp who believed political opposition is disagreeing with everything the ruling party says……..except increment of their salaries …zopusa basi. Dziko silingatukuke ndi mkhalidwe wa nyau..fotseki

wpDiscuz

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