IMF warns of economic turmoil: High debt, expenditure puts Malawi off course
A team of International Monetary Fund (IMF) has predicted of tough economic times ahead because the Democratic Progressive Party (DPP) is off course having bloated its public service and accumulated a huge debt.
Head of the IMF review team Oral Williams has expressed concern over the huge debt the government continues incur against the advice of the IMF.
“There is unjustifiable overspending in government. If not controlled, the economy will collaspse,” said Williams.
He said the bloated civil service has pushed the wage bill up, out of control.
“Malawi is yet to regain its course,” said Williams after his team was in the country for the economic review for the past two weeks.
He said Malawi government expenditures remain high and advised the government to spend within its resources.
Williams said the size of the government is too big compared to its financial resources, dismissing the government assertions that it is collecting enough.
“There is need to bring the size of the government down,” Williams said.
Finance minister Goodall Gondwe agreed with the IMF team observations.
However he said some of the issues were politically sensitive.
Gondwe gave an example of some public officers, top civil servants including principal secretaries, commissioners, paratatal chief executive officers and judges whom he said get a vehicle each, 500l of fuel each, a driver each and maintenance for the vehicles which he said costs a colossal amount of money.
He said these benefits are promised to the people when they are hired and it could be politically insestive to take them away.
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POLITICAL SENSITIVE INDEED
Anything the government put in place does not work.Touching this button you are offtrack.Sorry ,indeed we are heading for disastor
President Magufuli style on running government is what we need in Malawi not these fellows who are there to milk the country for their personal comfort . Malawi is the only country in the SADC region that has such kind of over rated allowances and benefits for high ranking officers in the civil service yet has no enough financial resources to sustain these. Reduce these over rated benefits and use the funds to provide services to the public
IMF stopped helping us and we are surving from the little we have. What senseless comments are they making now? They thought we will all die within a month because they stopped funding Malawi? We will survive until we improve our economy. Nanunso enanu mumangovomereza chirichonse akuti ogwira ntchito m’boma achuluka ife nkumavomereza zimenezi? mukufuna anthu achotsedwe ntchito kapena boma lisiye kulemba anthu ntchito? Is that a good solution that can make you clap hands? Let us think fro our beloved Malawi. These international donors wants puppet Leaders like Joyce Banda whom they can easily manipulate to advance their own… Read more »
AKULODZATU MADALAWO ORIS
Dumbfounded! He used to be head of the heads in the IMF.
The guy is corrupt in his mind and body! He has outlived the and must go shupitiiiiiii!
The answer Mr. Goodall Gondwe gives, is not a good one. He is implying to keep high expenditure forever, thus even after 2024. That’s not exciting at all, sir.
What the hell does this man mean by politically sensitive? You mean the whole economy has to suffer because of political appeasements. If someone wants to be PS because of 500 litres of fuel when there is no money for the 500l they should quit. Others can take the same position for 200l a month or less. No hardworking top civil servant can use 18litres a day of fuel. When these people have trips outside stations they dont use the allocated fuel.
Poitically sensitive my foot
Kodi nkhalamba iyi ikuti chiani?? Yanditopetsa SUPITI