Malawi govt risks bankruptcy if it grants civil servants salary increase -Report

Malawi government risks being declared bankrupt if it goes on to grant civil servants salary increase as the country’s public service salaries and wages are set to slide over the internationally recognised standard cut-off point of eight percent of gross domestic product (GDP), experts have warned.

Gondwe: Already presented his budget

Gondwe: Already presented his budget

The Civil Servants Trade Union (CSTU) has given the government a 21-day ultimatum to act on their demand for salary increment.

CSTU Secretary General Madalitso Njolomole said Monday that the civil servants feel betrayed by their employer, the government, on the salary revision for the 2015/16 financial year.

“The information we have from the Treasury indicates that government will not honour what was agreed during the salary negotiations revision,” he said.

He said the body wants the government to honour and implement the salary adjustments during the next financial year which starts on July 1.

Njolomole however warned that failure to honour the demand shall lead to a nationwide industrial action in the entire civil service including teachers and health workers.

But Catholic University head of economics department Gilbert Kachamba has observed that the country’s tax base is “very small” and any increase in salary expenditure would lead government into bankruptcy.

“Salaries should be in line with the national income. Looking at the current economic situation, it is not appropriate that the nation should suffer because government wants to pay somebody,” Kachamba said as quoted in The Nation of Wednesday June 3.

Catholic Commission for Justice and Peace (CCJP) national secretary Chris Chisoni is also quoted by the paper, saying there is no moral justification for CSTU’s demands.

“The demands that civil servants are making must also reflect the other demands from Malawians on the fulfilment of the right to development. Government must do what it has the capacity to do and this must be balanced with other priorities,” Chisoni said.

Ministry of Finance spokesperson Nations Msowoya said at the moment Treasury is not making any effort to meet the demands of the civil servants.

Minister of Finance, Economic Planning and Development Goodall Gondwe presented to Parliament for deliberation a K901.6 billion (US$2.1 billion) national budget in which government seeks to increase the annual salaries and wages from the current K198 billion (US$440 million) to K228 billion (US$506.7 million), which would result in 25 percent of the financial plan being spent on salaries and wages for less than 200 000 public servants out of 16 million people.

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51 thoughts on “Malawi govt risks bankruptcy if it grants civil servants salary increase -Report”

  1. kazeze says:

    A Petros ndi Brunettie, ndinu zitsilu za anthu. Nanga inu ma civil servant mukugwila nchito yanji ngati development yayima in all sectors? Kumangolandila ndalama basi? Infact Government should review its man power requirement against delivery of service which is close to zero at the moment. I don’t want to pay anybody through my tax for doing nothing let alone increasing salaries when service delivery is grounding to a halt, what nonsense.. Mr minister of finance please stand your ground on this one. For once you got it right.

  2. Kenkkk says:

    You are telling us donor confidence is back, so the govt should have money to pay salary increases.

  3. Petros says:

    You catholic people ndinu zitsilu.hw can act against salary increment for your friends and relatives. Musandipemphetso chakhumi changa

  4. less than 200 000 civil servants serves 16.5 million people , hence government must care the civil servants if it is to achieve its development goals. money for development can not be money for salaries. even in the budget itself, we have money for development projects indicated already in the budget, a figure for pay rise is also indicated seperately, our ministerr of finance already knew all issues of tax base and GDP. CONSIDER PAY RISE CIVIL SERVANTS PLEASE.

  5. Concerned health provider says:

    This bitter council would be easier to heed had this same government not voted legislators, president and advisers HUGE salary increases and justified them as serving the poor in their constituencies.

  6. WaNakabaghe says:

    Imwe mukuti salary itsakwere ndimwe vyakufuntha nkhanira. Zinthu zikwere mtengo salary otsakwera! Chamba etii? Kandani iwe chisoni pamsana pako. Tizadya kwanu ife?

  7. Gift Innocent Daka says:

    The govt must also consider the right to development of other jobless citizens because an increase in salary and wages will lead to small allocation of funds to development activities

  8. Davie mwale says:

    Zamkutu ife atipatse incrment yathuyo as they promised

  9. hendrina says:

    tiyeni nazoni

  10. burnettie says:

    its better z government declared bankrupt than individul civil servants to be suffering

  11. Rich nduna says:

    Kuchipatala kumene ma patients akudandaula,mumapanga attend ngati pachipatalapo mulipo atatu,akakhala a polisi ndiye kuba,,muzikabwereketsa mifuti..nawe mtsilikali ndiwe wakuthengo ukufuna ndalama zachani??? Chamba mungolima komko..mumagwira ntchito??

  12. Rich nduna says:

    Olo mupange strike,,,,ndipo ofunika tsiku lomwe muyambe strike lomwelo no,malipiro

  13. Mtundu wanga says:

    usalire waba wekha, usalire waba wekha.

    Boma linawalonjeza kale anthuwa za malipiro okwera thru harmonisation ndipo Rt Hon Chilima amayankhula mwamatama kuti adzakhala ndipo lero mwakhaladi wapampando wa Civil Service.

    Ngati simuwapatsa malipiro atsopano anthuwa kuyambira pa 1 July ndiye kuti tiwathandiza kuchita ziwonetsero nationwide.

    Sitikufuna za mu October kaya ndi November kaya ndi December ayi, koma 1 July 2015. Ngati mulibe ndalama tamupempheni Major Prophet Bushiri akugayilani lololo. Mumva m’bebe chaka chake ndi chino.

  14. ,MYEGHA,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, says:

    why junior increament will start in December but new budget start on first July. You are thieves. Where shall the increament of five months go? AAA!! THIS COUNTRY.

  15. Bololo says:

    Your demands civil servants are not matching with productivity and output. If you feel competent enough and you don’t agree with your current salary just resign and go where you can earn more. Govt money is not just for you, as ppo who pay taxes we also need that money to serve us

  16. Mbanangwa says:

    Import Cover cover within the first six months, kikikiki. Mumayesa kuyendetsa boma ndimasewera eti? Ngaki ale mkazi uja wamandasi amalithanso Kurosawa a professor. Army a kuti strike, police strike, zi patiala strike, PALI KABWINO APA?

  17. Akuwajika says:

    Dpp promised these people salaries. so these people are no better than the jet,or cashgate, useless travelling. misonkhano yolemba makoma. Kachamba, chamba sichabwino

  18. Patriot says:

    Asovenge kkkkk

  19. Mswachi says:

    It’s good that Chisoni Chris (akanjedza) and friends are not employed by the Govt. Otherwise you couldn’t have said that! I’m praying for the day you will be Civil Servants! Of course knowing you and your friends; will never be. How do Civil Servants perform better knowing they are the least paid folks in Mw?

  20. BigMan says:

    Do the civil servants care if Malawi is declared bankrupt? Of course not.

  21. kkk says:

    koma kumenko

  22. Lawrence Banda says:

    Guys tiyeni tizikhala ndi chikondi..jst bcoz ndi salary ya civil servant nde zolankhula phwi…….

  23. MSANA WA PETURO says:

    You fool! where did your DPP think it would get the money when it promised civil servants fat salaries? People are simply demanding what your rotten DPP promised them! Aisova.

  24. Kachamba head of chamba economy ukasuta chamba chakocho usamayankhule za zii! Chisoni ndiwe chitsiru ndalamazo zimathandiza anthu 200000 okha;tamagomwa bibida ndi kugo….. ndi masister o,ulibe mzeru.

  25. shubert says:

    This govt is very stupid,they raised salaries for MP’s and Ministers plus loans of 24million was granted to them but there was no say.They increased salaries to seniors ranging from 70%-100% but no say.Now it comes the juniors salaries to raise they say govt has no money, its very sorry and shameful to ourgovt.

  26. OBSERVER says:

    NDILI NDI CHISONI KWAMBIRI KUTI MUNTHU UKAKHALA KACHAMBA UMALANKHULA ZOPANDA PAKE. KODI SALARY YA KACHAMBA NDI CHISONI NDI ZINGATI? CIVIL SERVANTS WORK HARD, EVEN UNDER UNBEARABLE CONDITIONS GO TO HOSPITALS, ADDS, COUNCILS, SCHOOLS AND SEE 4 URSELF BUT THEY LEAVE ON MEAGRE PAY. GOVT HAS MONEY…..

  27. Amos osmund majozi says:

    So why not reduce the salaries of the prez, ministers, mps,dgs and reduce more embassies, reduce travels ,sell all but one state houses and finally introduce fuel levy for state salaries .and finally indeed use lake of urs as an economic resource?

  28. ankhoma says:

    kachamba and chisoni could you pliz read again the manifesto of dpp.

  29. Sapitwa says:

    The Government to be declared bunkrupt because of a salary increase demand by 200000people leaving 15,800,000 to suffer?
    I thought you should know better that your employer has no money? Where do you think your employer will get money from?

  30. Honest says:

    Kkkkkkk ukasuta chamba pena umakhala ndi chisoni chautsiru(kachamba chisoni)

  31. The Most Concerned says:

    Even if u go on Strike, no Government official will use his private money to finance the budget. If the Government doesn’t have money, no Civil Servant will get a Salary increment, take it or leave. If u think what u r earning is not enough then find another means. Kalimeni kumudzi. Nonsense.

  32. Benlison says:

    Please leave us alone,mamakondwa mukationa tikuthera mukatapila eti?

  33. inkata be says:

    We don’t need devils philosophy of chisoni and kaganja. That’s pure text book economics.
    Leave the battle to us, the civil servants.
    By the way does livingstonia university have good lecturers when they produce trash for the job market.chisoni ambuye yesu akukhululukire

  34. Eden Matic says:

    Mmayesa mumawalembera a reserve bank, do the same as you did with msb, we need our increase.

  35. magaula says:

    ulendo uno ndi khoba yomwe ikhala pa strike

  36. Namate says:

    This is interesting because even before increasing the salary the wage bill has already exceeded what is described in the article. I think these think tankers are very stupid if not foolish. How can one tell the family that they should sleep on stomach because they would start development (ie building a house).

  37. Thaundi says:

    Akuenera kutero,kodi pamene ankapatsana ma 85% a CCJP ndi CU munalikuti,its non of ur buznez kuno siku Pvt kapena ku Ngo..nawe N. msowoya usamalike upweteketsa anthu osalakwa tikamapanga strive olo mwana wako sadzapezeka ku zipatala za boma..nthawi ija unkamva kukoma atakupatsa malipo ambiri diz tym watch ur mouth…

  38. Masangwi is dpp mp, dpp is the thieving ruling party, Masangwi evades tax on goods worth about MK170m. Kapoloma says gvt lost MK16m in tax due to Masangwi’s behaviour. Gvt pays Mulli’s loan to MSB. Last year top gvt officials were awarded 75% salary increase. This year gvt has no money for salary increase for junior civil servants. Who’s fooling who???? Koma chaka chino kuli ma staraka osayamba. Tiyeni nazoni.

  39. EMMANUEL says:

    MR KACHAMBA YOU ARE WORKING WITH PRIVATE SECTOR YOU DO NOT KNOW THE PAIN WE CIVIL SERVANTS WE ARE FACING .YOU BETTER MANAGE YOUR SCHOOLS NOT US

  40. Malawiana says:

    Don’t cheat people here. This government has always been bankrupt yet is has managed to pay salary increments for the Judiciary staff and Parliament staff; has paid billions to MSB, has granted nonsensical loans to MPs, has settled dubious out of court cases, etc. Your GDP issues are just textbook economics. Here in Malawi we run government by convenience not international standards.

  41. RM says:

    Tiyikonde dziko lathu. All Servants should wait until December. Or else the Minister should raise ur salary simultanously hike your Tax.

  42. Everson Jere says:

    Mbuli ndindani boma kapenA malecture. Mesa boma lawelengera kale bwibobwino NDE akukambAwa zawo NDE zanzeru kuposa boma limene titero???? Kapena unduna wA zachuna ukhale wawo et???

  43. chosadziwa says:

    iwe chisoni ndi nzako kachamba shutup ur dirty mouths.tikayamba strike ntchito mukagwira ndinu?mukathandiza odwala inu?ngati
    mulibe chonena osangokhala chete bwanji? kaya mufune or musafune ife timenya nkhondo mpaka ationjezera malipiro july osatinso december

  44. KAMBUKU says:

    Cost-Benefit Analysis yagwiratu ntchito apa

  45. Honest says:

    Funny. Yet the same Govt almost settled the MSB loans for Mulli and his crew. My Malawi.

  46. Tim Masamba says:

    What’s new Malawi is already bankrupt worse than MSB!!!!gGive the people their dues in wage increase!!

  47. Boy says:

    True the tax base is small but there is too much tax evassion by the Asian community, especially at the boarders.

  48. Akatswiri says:

    Shaa

  49. Amin says:

    Uphawi basi umenewo

  50. Chemjambe says:

    Koma ambuye atithandize ndithu budget ya dziko $2.1 billion yokha basi…….

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