Increase in State House budget by K600mil, Malawi army allocations up: Cuts in VP office, ACB no additional resources

The budget allocation for State Residences has been  increased from K5.3 billion to K5.9 billion but allocation to the Office of the Vice President have been cut from K5.04 billion to K4.8 billion, according to the 2016/17 national budget review.

Malawi government needs to win back the confidence of donors, who are withholding 40% of budgetary support following allegations of corruption and systematic looting of state resources by senior civil servants and politicians.

Finance Minister Goodall Gondwe presented a reduced midterm budget statement in Parliament from K1, 1492 trillion to K1.129 trillion.

Gondwe said on Monday that government is optimistic of economic rebound this year.

“We cautiously submitted that the economy will recover soon,” said the Finance Minister in Parliament in his winding up statement on the debate of the midterm budget.

“Implementation of the budget has been successful, apart from the problems in Fisp (Farm Input Subsidy Programme) and maize purchase,” said Gondwe.

The review has seen Treasury not giving additional resources to Anti Corruption Bureau (ACB) maintaining its K2 billion allocation.

But there is an increase to military spending with Malawi Defence Force (MDF) given additional funds from K20.9 billion to K26.7 billion.

Malawi Police Service has also an increased funding from K22.9 billion to K28.1 billion.

There is also increase to Ministry of Health from K95.2 billion to K101.7 billion; Ministry of Education has an increase from K146.2 billion to K150.8 billion.

Finance Minister said   “despite doubts” from some members, the government “look forward to the next half of the financial year with confidence.”

The House will start vote by vote scrutiny of allocations on Tuesday.