MCP says budget disconnected from Malawi’s economic realities

Malawi Congress Party (MCP) parliamentary spokesman on finance, Dowa West MP Alexander Dzonzi, on Monday went on a loose cannon mood when he critiqued the proposed 2015/16 National Budget, saying the financial plan is out of sync with the country’s economic realities.

Chiphiko:  Nameless budget

Chiphiko: Nameless budget

Dzonzi said the DPP-led government is either utterly clueless or has no intention of governing Malawi at all.

He described the budget as a bankers’ budget, where money has been made a product and not a means to production.

Said Dzonzi: “This is why the minister is more engrossed with macro-economic fundamentals such as interest rates and flexible exchange rates without paying attention to the true needs of the productive sectors such as agriculture or manufacturing.”

The MCP lawmaker pointed out that Finance Minister said “literally nothing” on what the government is going to do on the high interest rates let alone on the creation of the producers’ markets.

“The DPP-led government has yet again missed a golden opportunity to use its fiscal powers to turn around the ailing economy. Instead of prescribed long term goals, the government has, once again settled for a consumers’ budget as opposed to a producers’ budget,” he said.

He also said the budget is failing to tell how the “increasing and alarming” employment levels affecting Malawi youths are going to be addressed.

“And indeed, Mr Speaker, Sir, this budget fails to tell us as to how the worsening situation of balance of payment is to be addressed,” he said.

He said MCP has looked at the budget and find out that it is disconnected from Malawi’s economic realities.

Dzonzi said with dwindling resource envelope following donor budgetary support, Malawi will progressively lose its ability to finance most or at least not adequately, social services which hitherto it was able to finance in the past.

“This calls for the implementation of stringent measures aimed at reducing the overall government expenditure,” he said.

“Speaker, Sir, a bloated, redundant civil and public service, a perchance for luxury and gluttony, a growing culture of official incompetence and corruption, a tolerance of economically imprudent and unconscionable expenditure of public resources, Mr Speaker, Sir, are hardly factors conducive for the economy on its deathbed.

“It is important for the government to remember that our budget will be operating in a shrinking revenue condition because MRA is already missing its targets, companies are selling down operations. This Mr Speaker, Sir, calls for government to re-connect with the donors,” said Dzonzi.

The MCP lawmaker said government “must decisively deal” with the present Cash-gate as well as that of the past [K92 bill0n from 2005 to2012].”

He also said MCP is looking for a professional Civil Service, “an apolitical civil service that implements government programmes beyond launching days. “

The lawmaker accused Gondwe for being s contented to pursue the phantoms of reining in the high inflation rate and promising to bring down interest rate by doing nothing more than having a shear optimism.

“This is very strange economics, Mr Speaker, Sir, and it is disturbing to note that the country’s Minister of Finance puts his trust in it,” Dzonzi said.

He said the law empowers the Minister of Finance to use his ingenuity to harness fiscal policy as a tool for economic development.

“I have not seen this in the budget and perhaps it is not fair to expect the DPP- led government to do so.

“Designing a competent economic blueprint, Mr Speaker, Sir, requires political commitment and vision; fiscal prudence and financial acumen, all of which I am forced to conclude, are in short supply in the Democratic Progressive Party ranks. Another area, Mr Speaker, Sir, is that we find this budget as an abdication of the Minister of Finance of this fiscal authority,” pointed out Dzonzi.

He also accused the DPP-led government for allowing a formation of a parallel government within Malawi that has been tasked with the implementation of off-budget programmes.

Dzonzi said the country “is being taken for a ride”, saying the off-budget support utilisation is an illegal activity that is being done with the support of some the development partners, calling for a stop forthwith.

“The fact that the DPP-led government has allowed this to be done in this country is not only a breach of trust given to it by the Malawians but also an abdication of fiscal authority by the Minister of Finance.

“MCP therefore, expects both government and our development partners to follow the country’s prescribed systems and operate within the Public Finance Management Framework.”

In his address, Chairperson of the Budget Committee, Ron Chiphiko noted that unlike most recent budgets, the 2015/2016 Budget has no name or label to highlight its fiscal principles or thematic emphasis.

“Indeed, in the last five years, it has been customary to have a zero-something budget. We started with a Zero-Deficit Budget in 2011/2012, then Zero-Domestic Borrowing Budget and last year we had a Zero-Aid Budget. Not that it matters, but we are wondering, Mr. Speaker, Sir, why we have a nameless budget this year,” said Chiphiko.

Debate on the budget continues in the House.


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20 thoughts on “MCP says budget disconnected from Malawi’s economic realities”

  1. ochewa says:

    Want such constructive critism and i hope finance minister will take note and the action the recommendations from opposition. This Malawi we are not yet there but if we can start we will reach the destination. Be a serious govt.

  2. Mthawanji says:

    Fairly speaking MCP mps have something to speak on this budget.I like their observation,How are going to develop if all what we do is eating guys come on.

  3. MWASUWA says:

    Grand papas please let ung’ono-ung’ono tell us lies not you.

  4. Phodos says:

    I am very happy nobody is talking nonsense over Malawi and Donor relationship. Simply because IMF and European Union and African Bank have started opening their pockets for Malawi’s economy. Foolish Civil societies, opposition parties, economic comentators, Unima lec-comentaters.

    DPP is taking the right direction.

  5. Charombanthu says:

    Now, that is what we call constructive opposition or criticism. Government is serious business and these DPP guys seem to think that it is business as usual. Production (agriculture and manufacturing) is the only solution to taking this country out of the woods and MCP rightly osberves that the budget largely centres on the consumption side of the equation and yet it is based on “no aid”. Idutsa budget imeneyi?? Doubtful…

  6. Omex70 says:

    DPP led government is clueless. Both the president and finance Minister are grand papas who are not presidential and finance minister materials at all. They just want to waste our time in Malawi. They both are retired employees who were supposed to be at home looking after their grand children.

  7. zoona says:

    Kodi mukanakhala inu mukanatani?

  8. mkaidi says:

    Koma ku Malawi anthu ayambadi kuziwa yeti. This is very true word think of the future don’t just budget about one year then nothing no future iat all

  9. john says:

    Be specific apa angonena in semantics but not specific on issues at hand

  10. Hembahemba says:

    Odana ndi dpp mumva kuwawa heavy.

  11. learnedmi says:

    1 Resources are limited the population is growing astronomically.

    2 Civil Servants want increments annually.

    3. The number of MPS is too much.Politicians are the ones plundering our monies,
    graduates,standard four dropouts same salary.


  12. puludzu says:

    Well said. Kudos our MPs. Now am having some little trust in this August House. Especially views from the MCP benches. Keep up the good job

  13. Getu Petulo Trivia Salanje says:

    Anzeru aku mawa ayankhula. DPP government is only busy with tribalism, nepotism and regionalism.

  14. nobel says:

    It never rained but pours for DPP. They stole the vote for leadership let them also rig wisdom to rectify budget woes. Let’s hope they won’t suffer from cardiac arrest!

  15. Nyirenda says:

    MCP ndichipani chokhacho chomwe chingatukule Malawi chifukwa kuli anthu anzeru zakuya osati tikuziwona panozi ndi DPP ayi, Malemu Bingu adalamulila bwino dziko lino mu first term chifukwa cha MCP Imamuwongolela bwino bwino koma atangopatsidwa aphungu ambili dziko lidamukanika poyela kutsimikiza kuti MCP kuli athu anzeru za kuya.

  16. Mbewa ndi nchira says:

    Mr Chiphiko, and your “nameless budget” man, you are wasting time and money.

    Its true that our grand father, Goodall Gondwe is always talking about inflation and interest rates.

    But remember, ALL these people are dead wood and american pensioneers. They only came back few years ago. so they can’t be realistic.

    Judges, Nyirenda and Mbendera know all what they were doing.

  17. Namiasi says:

    Eee koma mwawatengetsatu.bp sinashute a goodal wo paja sachedwatu.

  18. Apao Kugola says:

    Eeeeh No comments. Anthu sanamve chilichonse. Shaa anthu ambiri ndiwouma mitu pa forum pano. Macroeconomics at work.

  19. ujeni says:

    They have allocated more money almost 70% of the money to recurrent budget that is consumption while development budget gets a small percentage. How then are we going to develop if we are not serious with road construction. We have roads in our cities that look like once upon a turn footpath, eroded on the sides not fut for two cars to by pass each other. Yet we prioties eating.

    1. JJB says:

      Then stop asking for 200% pay rises

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