Malawi to increase salaries of junior civil servants from December: 2015/16 National Budget

Minister of Finance Economic Planning and Development, Goodall Gondwe on Friday told the National Assembly that government would increase salaries for junior public servants from December this year.

Finance Minister Gondwe: Salaries for juniors up by December

Finance Minister Gondwe: Salaries for juniors up by December

Speaking when presenting the 2015/16 national budget, Gondwe said this would be one of the main features of the national budget and is going to push up the wage bill from K198.0 billion in 2014/15 financial year to an estimated K228.7 billion.

The finance minister, who presented a K901.6 billion National Budget, also claimed that the design of the draft financial plan for this year was characteristically reflective of the diminishing size of the resource envelope available to the Government, as a percentage of Growth Domestic Product (GDP) against the pressure of growing needs to provide critical public goods and services.

He said among the key features of the budget, total expenditure and net lending in the 2015/16 budget was projected at K901.6 billion.

“Within the figure of Total Expenditure and Net Lending, we have included resources that will be spent on very important Government programmes. In the aggregate, the House will note that it is projected that Recurrent Expenditure will be K674.6 billion, while Development Expenditure will amount to K224.0 billion.

“Within the recurrent expenditure allocation, however, it is proposed to increase wages and salaries by an amount that will raise the salaries of the junior grades in the public service,” explained Gondwe.

He further stated, “The budget also provides for the recruitment of some 10,500 primary school teachers and 466 secondary school teachers, who are projected to join the civil service during the last quarter of the financial year. These initiatives as well as an annual wage creep scheduled for implementation in December 2016 will raise the Wage Bill from K198.0 billion in 2014/15 fiscal year to an estimated K228.7 billion.”

Summarizing the whole budget, Gondwe said the draft budget assumes an optimistic macroeconomic outlook for the next financial year, projecting an inflation rate decline of up to 16.4 percent during 2015/16 financial year.

He then said government also projects a general decline in interest rates, based on the expectation that the Reserve Bank of Malawi policy rate would be reduced in response to the dampening trend in inflation.

Further, it is expected that the exchange rate will be more stable than it was during the 2014/15 financial year giving hope of registering a higher real growth rate of about 7.0 percent in 2015/16 fiscal year.

Gondwe disclosed that total revenue and grants are projected at K763.5 billion in 2015/16 national budget representing 22.2 percent of the country’s GDP. This, the minister said is a lower share of GDP than the revised figure for the 2014/15 of K683.3 billion, which represented 24.2 percent of Growth Domestic Product.

This decline in total revenue, and grants as a share of GDP, Gondwe said is due to the continued decrease in donor grants, which amounted to K132.8 billion in 2014/15 financial year, but are projected to decline to K97.1 billion in the 2015/16 national budget.

“It is worth noting that even project grants, which remained buoyant in the past, are projected to decline from K71.5 billion in 014/15 to K52.9 billion in2015/16. Moreover, dedicated grants are projected to decline by about MK10.6 billion relative to the 2014/15 revised figure of K47.6 billion,” the Minister explained.

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watchdog...an eye
Guest

ya

Xxenophobia Banda
Guest

Anthu amenewa akutiyenda Njuga kwambiri Googall akadafotokoza kuti ma Juniors ndi awawa komanso ma Percent mwakuti koma ngati kagulu kena sikawonjezeredwa ndalama ntchito ivuta komanso december ndi kutali kwambiri Budget mwapanga pano increament December,Munatani ka Budget kanuko osapanga mu December mo? We r watching you.

Namate
Guest

who are junior staff? In my understanding all those who do not have any kind of privilege such as professors senor Lecturer since their salary is a clean wage. Mind you the issue is about public servant not civil service only. There is need to clearly define who are Juniors in public service.

Bambo
Guest

stupid gvt

Mathanyula Petulo
Guest

Vinyophilo vanu agalu inu osangokhala chete bwanji u think December is tomorrow? How can you tell a hungry person that food will be served in two days time?

watchdog
Guest

thus talking

Essau
Guest

i thnk these greedy creaturez em dnt care bout us,ppl hu voted,ds z pc ov shit

Mada
Guest

Tsopano majunior staff wa muwachita exempt misonkho mukukwezayi kufikira dec pamene mudzawakwezere salary? Ngati mudziwadula misonkho mukukwezayi pa salary yao yochepa kaleyi, will it be fair? Anthu amenewa pofika dec adzakhala amphawi otheratu moti ka % mudzikeko kadzakhala kopanda tanthauzo! Where is ma trade union? Cso? Paja nonse ndi ma senior servants, zanu zinayera eti?

Kangankude
Guest

CSTU mungokhala chete pamenepa? Lets stage strikes otherwise izizi sizoona

Tasaukanalo
Guest
Mukuti new salary in December is it fair? Pomwe inu ma MP mukangoti K20,000 per day sitting allowance nthawi yomweyo khethekhethe koma poti ndi Junior staff mukuti after seven months. Adanenatu paja Sikusinja kuti nkulakwatu uku anzanu satero chidani! Mukutinso mwathetsa students allowance for public Universities kodi a bomawa apangapo chiyani kuti ana athuwu aphunzire ku University. Think about poor parents in the rural community whose per capita is very low and they even failed to pay school fees for their children at Community Day Sec. Do you think those people can afford to pay K275,000/semester at the university. Mulungu… Read more »
WaNakabaghe
Guest

Gondwe kumaganizako ako anzako. Chaka ndi july otsati za dec zakozo. Aphungu chonde help us plz musalole za fodyazi chonde. Mcp ndi pp tili pambuyo panu chondee

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