Malawi to continue with ‘zero-aid budget’ –Finance Minister

Minister of Finance, Economic Planning and Development Goodall Gondwe has said Malawi will continue with the hurting zero-aid budgetconcert whilst waiting for aid resumption.

Gondwe greets opposiiton leader Lazarous Chakwera (L) in parliament

Gondwe greets opposiiton leader Lazarous Chakwera (L) in parliament

Gloomy faces of Lawmakers in Malawi Parliament

Gloomy faces of Lawmakers in Malawi Parliament

Malawi has been operating without budget support since October 2013 when donors started withholding 40% of budgetary support following allegations of corruption and systematic looting of state resources by senior civil servants and politicians.

African Development Bank (AfDB) will inject about K8 billion in budget support with the World Bank also hinting at supporting the next budget.

Finance Minister is not pretending that government can do without donor support.

He has however said the zero-aid budget will continue until donors resume aid.

“I am more concerned with what we can do ourselves than what we can get for free. But it has become very clear that disasters like the floods will affect what we can generate in this coming financial year,” Gondwe is quoted by a local daily.

Gondwe is expected to present his budget statement on Friday, May 22 and he has estimated that it will be a “hard to sell” budget worth K900 billion. The 2014/15 budget that expires on June 30 is worth K770 billion.

Representatives of the United Nations (UN) and the government of the United States of America (USA) have since said that it was encouraging for President Peter Mutharika to outline the reform programmes during his State of the Nation Address in a bid to regain trust of development partners and Malawians at large.

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9 thoughts on “Malawi to continue with ‘zero-aid budget’ –Finance Minister”

  1. Doing without donors seem to be possible now-HOW HAVE WE MALAWIANS MANAGED TO SAIL THROUGH UP TO NOW ngakhale tikudutsa munyengo zopweteka SINCE DONORS WITH HELD THEIR AID? Provided the government and opposition trade carefully by not adopting punitive measures, for instance the buying of a presidential jet is not necessary more especially now, when we are at hunger striking point. We will waste tax payers money on programes that would not be prioritised. The first priority should be looking at the welfare of the poor on the ground.

  2. Tengupenya says:

    Invest in youth and the poor to rejuvenate the economy. Funding the poor is not subsidies. Farm input Subsidies meant for the poor in Malawi are hijacked by legislAtors and other political elites. So subsidies do not really reach the marginalized production at the bottom of the development pyramid in Malawi. Provide the poor access to credit for food production, and home improvements and in-need entrepreneurship for the unemployed. Micro finance and rural agricultural related investment banking.

  3. Concerned citizen says:

    The principle is great. One observation is that there are too many MG vehicles moving aimlessly on our roads, if compared to the time of Bingu and Joyce. What is happening. Please tighten the controls. Especially during the weekends.

  4. mashanie says:

    Put more money into youth development and you shall never regret, they will be able to make vibrate decision and sell this country to,a higher level

  5. jack Phalombe says:

    Malawians never be fooled that our country is poor.

  6. mapwesera says:

    @ balamanthu you started very well koma wamaliza ngati mgalatiya.in hospitals they use health passports not just papers ,the purpose is to keep the health profile of that patient/individual.Learn to think

  7. OGA MUST HEAR THIS says:

    Mbola zokha zokha ndikumati afuna agule jet while u can not be able to fix yo bajeti

  8. Balamanthu says:

    Let the government work on strategies to stave off corruption and use its funds wisely and prudently.The tone needs to be set by the President himself by being prudent.When he goes to USA with 163 staff thats not being clever.Dziko lanji lopanda even paper plemba matenda amunthu?

  9. Kanyimbi says:

    Lets do with what we have. The donors are tired of helping us. moreover their money is also tax from their citizens.

Comments are closed.