Malawi’s economy is expected to grow faster this year than previously expected and the 2014/15 budget will be sent to parliament in September, delayed from June when the fiscal year ends, Finance Minister Goodall Gondwe said on Wednesday.
“After a careful review of what has been prepared so far, we find that the 2014/2015 budget is far from being ready … we need to verify the stock of arrears among many other issues before the budget is finalised,” Gondwe told Reuters.
“We expect to present the budget in September, 2014 when outstanding issues will have been resolved,” Gondwe added.
Malawi’s fiscal year runs from July 1 – June 30.
Gondwe, a retired IMF technocrat, forecast the economy to likely grow 6.5 percent in 2014, slightly higher than the 6.3 percent projected by his predecessor.
He said that increased production in cash crops, like tobacco and tea, and the availability of foreign exchange were the main factors for the revision.
“The expected higher growth should see inflation ease to 14.2 percent by the end of 2014, from 23.5 in 2013,” he said.