‘Tough times’ ahead, warns Malawi Finance Minister

Finance and Economic Planning Minister Goodall Gondwe has warned Malawians to brace themselves for tougher economic times ahead.

Gondwe: Warns Malawi 'tough times ahead'

Gondwe: Warns Malawi ‘tough times ahead’

Gondwe delivered the implicit message in Lilongwe Tuesday during a high level dialogue between Cabinet Ministers and the Civil Society Community (CSO’s) where the latter had demanded an explanation of Malawi’s economic stance.

He, however, expressed optimism that the country with weather the storm of economic recession.

The Finance Minister stressed the need for the country to find own resources to finance the health and education sectors as well as subsidies after IMF challenged the country to attain economic independence in a short period of time; depending on internally generated resources for expenditure.

“ It is not possible to have 100 percent funding in government with donors withholding 30-40 percent of the funds. The IMF [International Monetary Fund] has advised us to be able to cover own day-to-day expenditures in two to three years.

“Government is embarking on stringent reforms to cut expenditure and we will have monthly performance audits,” said Gondwe.

“Production is not as high as it used to be, so we cannot expect to generate as much revenue from tax as the case was before,” said Gondwe further explaining that the low production is partly due to the unruly weather conditions that hit the country in the last growing season.

Gondwe said with the right strategies which government has put in place, the country would soon regain her economic growth but called for “ stringent adjustments and reforms in our expenditure of resources.”

He said Malawi will have to, among others, reprioritise government’s activities and  broadening the tax base as one way of collecting more revenue.

“A number of people who are not used to paying taxes will have to start paying taxes. We cannot afford a luxurious life under the circumstances,” reasoned the minister further adding that public resources would have to be used as intended and efficiently.

IMF has suspended loans to Malawi for failing to cut its wage bill and improve revenue collection, making it less likely Western donors will resume budgetary aid.

Budget assistance from Western donors worth millions of dollars has been withheld for two years now —amid concerns of Cashgate, the plunder of public funds at Capital Hill— Such aid has historically accounted for about 40 percent of the national budget.

Finance Minister said overnment is geared to improve business environment and the macroeconomic situation in general.

Gondwe said he is “ absolutely confident” that Malawi will end up with a robust and positive growth.

The IMF said Malawi’s economic growth would slow to 3 percent this year from 5 percent in 2014, reflecting a decline in the maize harvest and weak private- sector investment and consumption.

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vilili
Guest

Hehehehe. Musova

Kamuna
Guest
Mr Gondwe, you are one of afew individuals who benefit and are happy with the same situation. Why donors always quit wen DPP is ruling? Cashgate existed since UDF, DPP, PP, DPP regimes, Why exergerating?. When Gondwe is hired to be min of finance there are always extuses on c. servants salary hikes, he is jelousy of them and he is hapy when they beg from him, not so? Please hav a human conciousness on poor c. Servants. Can u stretch ur arms to receive a salary of K40000 the whole month? Or kusaphunzirako. The money u see in that… Read more »
phiri
Guest

1.Well soon begin to clap hands for government….. Gondwe
2.Do sex while lights are on ….. Kaliati
3.?

Chipwailacommentetor
Guest

It z just tax collection u think Mr Gondwe? Y not cuting unnecessary trips with more than handred pipo? U must deep ur head down into water contener n come with tangible measures

ochewa
Guest

improve revenue collection…..how can you improve revenue collection when the same big DPP politicians doesn’t want to pay taxes…they are the ones who invade taxes….MRA being poorly managed by DPP appointed bosses …employees at MRA are ridiculous underpaid …..and you expect to collect more

ochewa
Guest

is it not the same Gondwe who said last year that the economy is going to improve…amalawi ayimba lokoma now he is saying we have to expect tough times…..go to heal you old man with cheap politics

gibbbbbbo
Guest

tili naye MULUNGU wathu wamoyo, sadzalora kuti ana ake avutike…….ndiwe ndan kuti utiopseze iwe?

Mania
Guest

is that a warning or what? am tired with that headline this year bwanji…? I thought the reason of forecasting the economy is to put in right measures? what are you doing big head Gondwe…?

Nathan
Guest

The president and his fellow robbers must reduce their unnecessary expenditures. How can Pitala be chattering private jets while the country’s economy is at its lowest? Boma la mbuzi ili! Musonkho wa chani apa, mumangofuna kubela anthu basi. Ngati muli serious ndi economy, nonse oyendetsa Boma mudziyenda pa Njinga za Kapalasa kuti ndalama zomwe mumawononga pa ma galimoto ndi ndege tigulire Mankhwala mu dzipatala.

CHE WISIKI BOTOLO
Guest
Hon. Minister. You need to revisit the Fertilizer Subsidy Package more especially the Legume seed subcomponent. I for one does not believe that this subcomponent has ever achieved its project objective as a bigger chunk of the seed issued to farmers has never been planted. Farmers recieve and consume the seed immediately. Legumes have also been distorting farmers choices of seed as they have been forced buy maize seed not suitable to their ecological zones if they were to access the free legumes. If anything this subcomponent has benefited the seed suppliers. You can do away with the legumes and… Read more »
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