Goodall unveils K902bn Malawi budget 2015/16: No budgetary support

Malawi Finance Minister Goodall Gondwe unveiled Friday the 2015/16 financial plan which he said has no budgetary support but projected the economy to grow by 7 percent, saying  inflation will decline to 16.4 percent and that interest rates will fall.

Gondwe: Delivers budget

Gondwe: Delivers budgetood

Until 2014/15 budget when donors withdrew aid, donors contributed up to 40% of Malawi annual budget.

Gondwe told parliament in the capital Lilongwe that falling inflation due to declining fuel prices and a narrowing budget deficit will boost Malawi’s currency, the Kwacha and see a rebound in the southern African country’s economy, despite a fall in donor grants

He told parliament that Malawi should stop judging its economic performance through the eyes of donors but he cited donors as a reason government won’t ditch Farm Input Subsidy Programme (FISP).

“It is critical that we should change our mindset and stop assessing our performance in the management of public finances in terms of how much donors support we have managed to receive. Instead, we should start congratulating ourselves based on how well we have performed with the meagre resources available to us,” said Gondwe.

The Finance Ministers said the priority of 2015/16 national pegged at K902 billion, up from K801 billion last year, will be to acquire enough food to ensure Malawians have enough food.

The Government will spend K8 billion for maize purchases during this year and K13 billion will be spent during the 2015/16 on maize which will benefit all Malawians.

He said the priority for food in 2015/16 national budget is particularly because of the floods that devastated parts of Malawi earlier this year.

Gondwe said the recurrent budget will be at K674.6 billion while the development budget will amount to K224.0 billion in 2015/16.

The 2015/16 budget also includes a net lending figure of K3 billion to capitalize the Higher Education Students Loan and Grant Fund.

In view of this, the payment of allowances to new students in public universities will be abolished.

Statutory expenditure is pegged at K424.3 billion, representing 47 percent of the total expenditure and net lending budget of K902 billion.

The overall deficit for the 2015/16 is projected at 4.0 percent of GDP which is slightly lower than that of 2014/15 which was at 4.2 percent of GDP.

At the same time, domestic borrowing is projected at K25.0 billion, or 0.7 percent of GDP, Domestic debt stock will, therefore, reduce further from 15.9 percent to 14.5 percent of GDP in 2015/16.

Gondwe also said tax revenues are projected to rise from MK581.0 bn to MK592.0bn in 2015/16.

Apparently, Malawi Revenue Authority (MRA) has strengthened the tax administration regime.

Topical Programmes

Finance minister announced that government will implement a number of priority programmes and these are;

  1. the Farm Inputs Subsidy Programme which will be allocated K41.5 billion,
  2. ii) Migration to the National Pension Scheme, whereby those public officers who are below 50 years old will migrate to the new Pension Scheme, and MK51.5 billion has been allocated;
  • iii)A Youth Employment and Empowerment which is aimed at creating youth employment and capacity building for the youth in the country,
  1. iv) The Greenbelt Initiative and Job Creation,
  2. v) The Promotion of Legume Production where an allocation of K1 billion has been provided in the 2015/16 budget to promote legumes production,
  3. vi) The Flood Emergency Recovery Programme to address the effects of the flood disaster that occurred in some parts of the country.

“The Government has already secured K36 billion from the World Bank and part of this money will be used to purchase maize for the silos and rehabilitate roads and bridges, irrigation and other public infrastructure,” Gondwe said.

Other priority programme for government, Gondwe said, will be the Public Sector and Public Finance Management Reforms, the Establishment of the National Planning Commission, and the Development Financing that will result in the creation of a financial institution that will finance development projects in the country.

In addition, Gondwe said the Malawi Enterprise Development Fund (MEDF) will also be reviewed with a view of transforming it into an agricultural financial institution that will provide credit to poor and medium sized farmers in the country.

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39 thoughts on “Goodall unveils K902bn Malawi budget 2015/16: No budgetary support”

  1. jolecent says:

    Zambiri ndi mbwerera in that miserable budget

  2. Haddss says:

    Kodi civil servant alipati

  3. newton says:

    Let’s support our Government to develop our country!!!!!!!!!!!!

  4. max mo says:

    Umphawi ndi wosayamba.nothing new from the budget.

  5. patrick banda says:

    Mk270bn will end up looted by the “voted for”and civil who are more of criminal servants as per Fahad Assan’s research,cry my beloved country.

  6. nyopsy says:

    wakwiya ndi mfiti

  7. abiti says:

    Goodalo old school watopa that is why can tax internet which is importae for development. Does this govt think .of the youth, l doing how does it expect its youth to get educate. Rwanda is developing

  8. nkhorongo says:

    Nothing new, just continuing JBs initiatives

  9. Bentrysmart says:

    this is comic readership. nothing worthy to smile at. no sign of change….

  10. Mike siliya says:

    Zatheka kale? Musamaletu inu ndi vizungu vanuzi! Any way tangotipasani chimangacho, a gudal timakudalirani

  11. Chikopa says:

    Wa Giboh, Wa Dada Gondwe wachekula nadi. Wakalutanga ku Old Age Home in Chigumula if DPP did not bounce back.

  12. Budget too High says:

    What a figure 902bn which means gov bodies has to collect 3,608,000,000.00 per every working day considering 250 working days in a year.

    From where will they collect this amount every single working day.

    Gov say MRA expected to collect 592bn from 581bn due to controlled measures. My dear FM MRA managing because people got caught up with strict and punitive tax system how is the planned because considering the hurdles going to improve business in our poor nation where 85% of people live under poverty line.

    USD2BN is just too high for Malawi and that with Zero Support. Impossible!!!

    In pressure RALPH KAMOTO will just make wrong decisions and spoil it further.

    Good Luck.

  13. Hestings says:

    Zimene mukukamba zosaveka nthawi yoseyi mwachitapo chini?Mukungodya ndaramazo.zachsoni a Gondwa!Kwanu ku Mzimba 2014/15 ndichiyani mwapindula?

  14. kachikho says:

    It seems there is no revenue growth for the first time since independence . Are we really making any progres ?

  15. Joogerman says:

    whats the increament for this year,guys?

  16. Kadakwiza says:

    Any investor coming to our beautiful country, Hon. Gondwe? What have you done Hon. Gondwe to create jobs? Malawians want to know,please. Another question, what have you done as government to improve our agricultural system since for 51years Malawians are still using axes and hoes in the fields. When will we start using machinery when comes to farming. Parliament in parliament out I have never heard about industrialization.

  17. henz says:

    What about salary increment for civil setvants?

  18. chindere says:

    How about salary increase for civil servants

  19. Biyisikolo says:

    Are civil servants’ salaries increased? If Peter is not doing that then DPP ndi boma la anthu aboza kwambiri. MCTU and TUM where are you?

  20. ujeni says:

    Reading the headline this is one trillion budget make no mistake about it.

  21. CLIC YAVUTA says:

    It sounds very very good. G. Gondwe ndi makinadi eti
    DPP sidzaluzanso basi guys.

  22. Concerned Citizen says:

    How much of the cashgate billions found their way back into the Government coffers?

  23. Mukanyoza apantchito mugwa ngati mai aja kkkkkkk

  24. mtubuka 1 says:

    Same shit different smell Mr gondwe. The whole government thing is a corrupt machinery driven by half baked ministers who are appointed on appeasement so can suck up to mutharika and his dpp. Mr gondwe you are just one of those guys who are told to go and read some useless papers in parliament only for dpp to steal all those billions. By the way, when is your president going to burn the illegal ivory that he promised? We haven’t forgotten yet.

  25. male pipo says:

    Inu tamayamikaniko, mberere zanuzo zikadatiphatu ife

  26. John says:

    What about increment mu boma? 900b spano.if ….everyone can benefit but…

  27. mzunzunde says:

    Bwana gondwe this realy shows dat boma linabwelera kwa eni yake.I silute u sr.you eat money you count money.I like u gudall’

  28. big g says:

    kkkkkk same old story

  29. mbwiye karonga karonga says:

    salary increments akumusife 80% ija munapatsa akuntunda ibwere apo biii

  30. Afiti opemphera says:

    What about salary increase to civil servants? ma 20% tatopa nawo, tikufuna ma above 70%.

  31. Gaxy laxious says:

    Okhalitsa pantchito akapume. Achinyamata nawo asangalale nawo coz ali ndikuthekera kotukula dziko lino.

  32. OGA MUST HEAR THIS says:

    ACTIONS SHOULD
    TAKE PLACE
    I’m TIRED
    OF WORDS
    AND FIGURES.

  33. JOE KRALOH says:

    AGANIZE BWINO

  34. chimutu says:

    what about salary increment for us civil servants?..what percentage are we getting thats year as per our traditional?

  35. Chopwicho says:

    Muganizireso zokhoza njanji, chuma chadziko chimakwera chifukwa cha njanji osati ma truck anuwa iyayi. Kungova kuti simungakwanitse kugula train……? Kozani njanji Malawi atukuka uyu

  36. What %age of the budget will new face of Lutepo will take. Same old story

  37. hon says:

    Did u spend the whole 800bn of 2014/15? Coz i didn’t notice any cash circulation in this country. Pple are suffering to hell

  38. Giboh Mtelemuka says:

    And 2years PAYE? we need young men in leadership really.

Comments are closed.