Goodall says Malawi govt continues to cut down on expenditure

Finance minister Goodall Gondwe says the government has this month borrowed K18 billion out of the budgeted K56 billion, an indication he said government borrowing is significantly going down.

Malawian Minister of Finance Goodall Gondwe: Cut down on borrowing

Malawian Minister of Finance Goodall Gondwe: Cut down on borrowing

There was no independent confirmation of the figures but if true, Malawi could be on track for the much needed extended credit facility with the IMF.

“We are cutting down on expenditure. I don’t think we will borrow more beyond the K18 billion,” said Gondwe.

Last month, the Finance minister said the government had not borrowed any money and assured parliament that Malawi’s traditional donors would be back in Malawi a year after leaving the country mainly due to cashgate, the looting of public money at Capital Hill by politicians, civil servants and businessmen.

The International Monetary Fund team is expected in the country next month to evaluate and assess if the government has met conditionalities set by the bank.

“Even the IMF resident representative agrees that we have done far much better this time,” said Gondwe sounding more upbeat than ever before.

IMF resident representative to Malawi, Godfrey Oestreicher has said the team will review the targets under ECF and examine the revised National Budget among others.

“The coming of the team will examine the economic trends and evaluate the ECF programs to determine if Malawi is back on track or not,” he said.

The team will also review major economic indicators such as inflation, reviewing government’s cash books to determine the correlation between the budget and the expenses by government, he added.

The envoy expressed optimism that the country’s program under the fund will get back on track

The withdrawal of the aid has led to total collapse of public health services in Malawi.

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10 thoughts on “Goodall says Malawi govt continues to cut down on expenditure”

  1. vin mongu says:

    This is good news but as always you tell countrymen lies but we know the truth from IMF mission to which you are an altarboy. no cosmetics here the dollar exchange rate does not lie as a proxy for economic hardships we face.

    Goodall, i thought you were clever really but may you are old. kaleleni adzukulu. donors have withheld 40% just to Govt but have mostly disbursed that 40% to NGOs, why not talk to NGOs and give them targets in those areas whihc are gaps for them to fill them we get 100% results in the end. But you want the 40% to eat it yourselves. kusetela mpenitu!

  2. muona says:

    Try and error government musova

  3. Pitala Paulendo says:

    What the hell!! I thought you are preaching that the donor era is gone. The IMF will demand one more thing..the action taken on the MK577 billion forensic audit report covering as far back as 2009. Then there will be call to account what action has been taken to explain what happened to the late murdered ACB senior officer, Issah Njauju. Then the IMF will demand to know what Peter Mutharika is doing about the stolen money by Kalonga at the Malawi Election Commission. The dance is long to the point that you’ll simply throw in the towel.

  4. Ngati boma likubanika ndi ngongole nanga bwanji ine woumane.

  5. The Analyst says:

    …………………………………………………………………………………………………………………………………………………………………………………………………………………
    . . . Should parents celebrate upon news from their whoring daughter that she has reduced the number of men from 54 last month to 18 men so far, this month?
    . . . Should a doctor be happy upon news from a liver-problem patient that he has reduced Kachasu consumption from 54 tots last month to 18 tots this months?
    . . . Should villagers celebrate coz a thief who stole 54 chicken the previous month, has only stolen 18 chickens by 8th November this months?
    ………………………………………………………………………………………………………………………………………………………………………………………………………………..
    . . . What if men’s pockets are dry hence no longer going after the prostituting daughter?
    . . . What if money has spoken goodbye to the Kachasu connoisseur hence the reduction?
    . . . What if the number of chickens in the village has gone down or the owners are cleverer now hence little chance for the thief?
    ……………………………………………………………………………………………………………………………………………………………………………………………………………….
    . . . Cant you see that the reduced borrowing has come about not because you are now prudent but there is no liquidity in the system?
    . . . Also, who is any more willing to lend you money with the creditworthiness that’s going down with each n passing day?
    . . . Should you be reminded that Treasury Bill auctions at the Reserve Bank are now always undersubsribed?
    Of course you may be way advanced in age, but lets not cheat each other here.
    ………………………………………………………………………………………………………………………………………………………………………………………………………………
    . . . Are happy to sit on a ticking-bomb budget deficit? Cant you see that the deficit is forcing you to savagely scramble for the little liquidity in the system hence crowding out others n driving up interest rates; thus, the macroeconomic instability?
    . . . You need not just reduce monthly borrowings but the budget deficit n this should be done not just to hoodwink the IMF but coz you realise its necessary hence the right thing to do.
    . . . A a, you need to sober up old man; you have for so long slumbered n we have for so long celebrated your mediocrity but this is not helping anybody. A a!
    ……………………………………………………………………………………………………………………………………………………………………………………………………………..

  6. George Kamanga says:

    Mr bad all gondwe only dogs in DPP can believe your lies. your big dog (APM) is back empty handed from abroad. he was boasting that donor aid days are gone but my shock he was busy begging street boys in Europe to fund his illegitimate government.
    it is a big laugh to this mad dog (APM.

    no one all over the world has ever entrusted a robber, criminal, gangster, monster and murderer with his precious gold and silver. so APM forget about the west just ask mason mbendera and Kenyatta nyirenda including false prophets to help you to rid the economy.

  7. Eye Witness says:

    Mzako mathanyula amukhiyanayo hard talk pa BBC. Primarily he claimed JB is not connected. When asked about the Jet he says JB is connected. Over two years in Government APM doesn’t know to whom the jet was sold to and how the proceeds were used. This APM is a dunderhead.

  8. Eye Witness says:

    Your government told us that the time of donor dependency is gone. What donors that would be back are you talking of? Hypocrisy??

  9. Truck says:

    NGONGOLE IMAKOMA POTENGA KOMA KUBWEZERA KUWAWA DONT JUST BE IN A HURRY TO BORROW MONEY BUT REMEMBER TO PAY BACK WHICH WILL BE DIFFICULT.

  10. Shem says:

    Sibweni, is it cutting on expenditure cutting on public healthcare spending while you let cabinet ministers to continue to receive huge monthly allowances to feed their fuel guzzling vehicles? Mwandavyira ntcheni

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