Malawi to get donor budget support of K40bn- Finance Minister

Malawi expects donors to to contribute about K40 billion towards the 2015/2016 financial plan, Finance Minister Goodall Gondwe has aid.

The national budget is estimated to be at K900 billion.

Malawi adopted a “zero-aid budget” for 2014/15, after donors suspended general budget support to government  following unprecedented corruption scandal, known as “Cashgate”.

But Malawi cannot balance its books without donor support, which makes up as much as 40% of the national budget.

“Though interested donors are coming up with a small budgetary support, as a country we are still working on zero-aid budget. You can see we are talking of K900 billion as the 2015-2016 budget but we are receiving just K40 billion in support,” said Gondwe during a pre-budget consultative meeting with various stakeholders in Blantyre on Tuesday.

He said the K40 billion budgetary support will come from donors such as the European Union (EU), World Bank and African Development Bank (ADB).

“After these consultation meetings, people should expect robust changes in the actual budget as all the views from the people will be taken into consideration. Some will be adopted instantly while others shall be considered at an opportune time,” said Gondwe.

He promised that the framework for the 2015-2016 national budget will be different from previous budgets, stating that government had put in place sufficient strategies on how to improve the country’s e

Gondwe then said the previous administration owed local companies and individuals about K155 billion.

“We are going to cut funding for ministries and departments so that we should repay the arrears the previous government owe people and companies.”

Gondwe has since urged the general populace to freely present their views on the budget through consultative meetings.

Malawi is implementing swingeing budget cuts in a desperate attempt to win back donors’ faith.

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