The chairperson of the Budget and Finance Committee of the House, Rhino Chiphiko has said it is “not entirely right” to say that Malawi has not been receiving donor budget support.
The World Bank and EU alongside other Western financial institutions and bilateral donors suspended direct aid to Malawi over widespread concerns over massive theft of public money and called for improvement of the public finance management system.
But commenting in the local press on the K1.1 trillion budget which Minister of Finance, Economic Planning and Development Goodall Gondwe unveiled in Parliament, Chiphiko said it is not entirely right to say that the country has not been receiving donor budget support.
“For instance, just last year, grants were projected at a total of K97.1 billion. This comprised K7 billion for programme grants, K37.2 billion was dedicated grants and K52.9 billion for project grants.
“At Mid-year, the projection was revised upwards to K130 billion with an upward adjustments of K13.6 billion in programme grants, K11.8 billion in dedicated grants and K8.4 billion in project grants,” he said.
Chiphiko added: “If you take out dedicated and project grants, the difference of K20 billion is programme grants, which culminates into budget support. It is all semantics I think.”
Donors gave Malawi conditions for aid resumption, chief among them, the tabling of the Access to Information (ATI) Bill, elimination of ghost workers in the public service and reforms in the Farm Input Subsidy Programme (Fisp).Follow and Subscribe Nyasa TV :