Kandondo unveils K257 billion Malawi budget
Finance Minister Ken Kandodo on Friday made his maiden budget speech when he presented a K257 billion Budget for 2009/10 fiscal year pointing out that the economy will grow 7.9 percent while inflation will stand at an average 9.7 percent.
Presenting the Budget in the national budge, Kandodo told lawmakers:“Despite the global economic downturn, we will record meaningful growth,.”
He announced a 15 percent increase in civil service salaries.
The Finance Minister also announced .tax exemption on purchase of buses, airplane, spare parts for planes, furniture and TV.
In a bid to boost the tourism sector, the Finance Minister also announced tax exemption to hotels of minimum 50 rooms.
In this year’s budget value added tax vat has been raised from 2 million Kwacha to 6 million Kwacha and that government has removed VAT on mosquito and sand fly nets for local production of mosquito nets in a bid to prevent the spread of malaria.
Government has removed duty from rail locomotives, aircraft engines and spare parts saying this measure aims at reducing transport coast.
Increased duty on vegetables, meat, fish, powdered milk, coffee, tea, nuts, spices, potatoes, onions the duty of this commodities now is at 30% from 10% in order to increase production of local products.
Government has removed duty on construction materials, all medical supplies recording duplication, photographic and projection equipment in both film and music industries.
Kandodo who presented his 36 paged budget document for almost one hour and thirty minutes, gave Ministry of Agriculture and Food Security held by President Bingu wa Mutharika a lion’s share in the budget with about K33 billion.
The country’s purse keeper said the farm inputs subsidies will this year not cover the cash crops as it were last year but the program will only cover food crops.
“We are scaling down on the subsidy program mainly because we want to promote mechanized agriculture,” the Finance Minister told Parliament.
He told the lawmakers that the Mutharika administration will spend 17.8 billion kwacha ($127 million) on fertilizer subsidies, down 39 percent from the year earlier.
Kandodo pointed out that the country’s economy is expected to grow in the face of global financil turmoil.
“Malawi’s economy is projected to grow in real terms by 7.9 percent. The forecast is underpinned by expectations of strong agriculture production, (the) imminent start of uranium production at Kayelekera and continued growth in service sectors such as telecommunications,” the Finance Minister said when he presented the budget.
The Ministry of Education has been allocated about K24 billion while subvention on the University of Malawi amount to K32 billion.
Kandodo also outlined that the Ministry of Health will be allocated about K23 billion.
Transport Ministry received about K30 billion while Irrigation has been given K5.78 billion.
Members of Parliament will scrutinize the budget, debate it for the next 21 days before approving it into an appropriation act.
Tagged with: budget, economy, Kandodo, parliament
I wish the 15% of civil servants be approved and processed as fast as they could because these people work so hard but what they get out of it its just peanuts.
I just hope the Ministry of Energy will have the biggest share as you know how we are struggling with this so called power of ours, Let the Minister of Finance look on that carefully because We are suffering.
The bold budget is good.but l have to express my views on the paye tax.The learned economist must have adjusted further the taxable amount,10000 is too minimal to many low income earners.l support the bubget.
we wish them good time to consider and look over it ,mabuku alimo? nyumba za matichala?
If you MPS are really serious remember the retirees. Remember that the president already promised the retired officers about it.Please please do something so that we can be able to build houses. YOU CAN’T build a house with k2000 000 .Pay school fees for children from the same.
Sindinamve zoti misonkho pa ndalama za anthu apantchitofe zisika kapena ayi. Chonde ikhale K20000 tax free kuti nafenso tinjoyeko.
If you wait 7hrs+ to see your comments, it might mean its all junk.
No comments from people will make your site fade; hope more websites will be developed in Malawi soon.
An active market needs competition, that’s why we have many poor services due to luck of competition. Things are changing.
By mechanizing agriculture is very important as farmers toil for months with hard labour. Kodi matrakitala aja a chair amapangila kampeni ku Kasungu alikuti?
good budget
Boma likawona umphawi wa amphawi mMalawi muno, kudya nsima ulibe ndalama sinzeru koma ukayidi chifukwa chitukuko ndi ndalama osati kumadya. panopo anthu ambiri akubvutika chifukwa ndalama sizikununkha kanthu chifukwa cha misonkho.
Chikhala Finance yanzeru akana chepesa VAT kuchoka 16.5% kubwera pa 10% komanso PAYE Tax blacket kuti yikhale pa 20% osati 30% ngati akapolo ogwidwa ukayidi.
Boma likakweza ma Salary nchimodzimodzi ngati kuchulikitsa msonkho(PAYE) This is just like brain-washing its citizens. Next timva kuwawa chifukwa cha Recession yilipanoyo kwasa miyezi mwina 9 kapena 10.
I just wanna agree with ACHIKULIRE U.k that malawi needs a different course when it comes to 21st century innovatives. Malawi is not blessed with growing food only, rather with all things that are waters, on land and in the air. So our leaders should not just looking @ agriculture as the skep goat but combine technology and intellect demonstrated by ACHIKULIRE u.k . Malawi is got alot skilled people but we need more of them joining politics to change course.Right now we are recycling old ideas by putting the same old tired people in positions expecting new and fresh results .Its not gonna happen.So this is a tip for all young and smart malawians lets start a movement that will serve malawi and let her grow and compete on world stage. Big it up .