Goodall says budget risk cuts if World Bank withold K50bn support

Minister of Finance, Economic Planning and Development Goodall Gondwe has expressed the hope that the meeting with International Monetary Fund (IMF) will be fruitful and that would lead to World Bank and Europeam Union (EU)  to disburse the budgetary support projected at K50 billion , saying failure to release the money will trigger cuts in the K1.3 trillion financial plan.

Minister of Finance Gondwe : Budget risks cuts if World Bank will not disburse

Gondwe said the IMF would be interested to know  the performance of the reforms in particular structural conditionalitied some ministries were expected to meet in the period under review.

He also said the global lender will check “if there has been compliance of ruled and regulations such as bank reconciliations.”

The government’s purse keeper said they done “quit well” from June 30 2018.

However, Gondwe said Treasury have overspent  by a point three percent  of GDP (gross domestic product), which he said “is not much”.

Gondwe  said IMF would be pleased to note the positive macroeconomic situation prevailing  in the country where the inflation has been slashed to single digits and exchange rate is stabe.

‘The Finance Minister said if they will not get the budgetary support, Treasury will be forced to cut funding in other recurrent transaction or ORT of a number of ministries and departments.

However, he said the cuts will spare the Malawi Defence Force and the Police. Key ministries of Health, Education and Agriculture will not be affected by the anticipated cuts.

Gondwe said the cuts would be to the tune of K32 billion from the recurrent expenditure – about 3.4 percent of the budget.

He said government would also cut about K28 billion from  the development account to meet the K50 billion budget deficit in the absence of the anticipated support.

 

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Operation Nchotsa Mbavas
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Operation Nchotsa Mbavas

Are WB n IMF not seeing the rampant theft by these guys in the govt, yet they wanna talk about giving the budget support aid. That money too will be stolen by the blue thieves n stealers….Hang on donors. The budget support will have no impact on the socio economic welfare of the mass. APM n his honeymooners trip to US will cost tax payers over USD 3 million. How can the donors put money into a rotten corrupted government. Save it for after May 2019.

#DzukaniAmalawi
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#DzukaniAmalawi

Honourable Gondwe, we all know that IMF will not support the release of budgetary support. We all know that the DPP-led government is unable to meet milestones which it signed off a year ago. DPP-led govt is so used to not taking their own promises and pronouncements seriously. You can fool Malawians but certainly not IMF, World Bank or EU. These are serious institutions as you might be aware honourable Gondwe (you were there). This DPP-led government has let Malawians down on so many fronts and yet you keep making pronouncements that you have achieved more than any govt in… Read more »

Aka
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Aka

Cut or no cut what I am able to tell is that the exorbitant taxes in the country can fund most of what we want to do. Tax on water, tax on sugar, tax on matches, tax on fuel, taxes on salaries, tax on cell phone units, taxes on each and every commodity we buy.
LEARN NOT TO STEAL IS THE ANSWER! A COUNTRY WITHOUT FISCAL DISCIPLINE. Perpetual borrowers

Hama
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Hama

So how are you going to finance free secondary education?

Patrick Mbewe
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Patrick Mbewe

And nandolo politics?

Kandulu
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Kandulu

The same Godwe yesterday told the whole world that there is nothing the government can do to stop abuse of public money ie he encourages looting and corruption without fear of consequences. He further said the State house and OPC should not be audited. Today you tell the donors to give you more budget support. If you were a donor what could you have done? Trust Malawi with more money or not. Just ask any Malawian if he or she trusts you with his or her taxes. I personally took a survey to ask ordinary Malawians if they trust their… Read more »

fred
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fred

Mavoto za treasury ndi Ben botolo, amaenyo wayamba ku ngwira nchito malawi economy wayamba mavuto, A liability in DPP

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