Goodall says govt to devise zero-borrowing plan: Finance Minister rejects saying Malawi economy in God’s hands
Tough times call for Malawians as government has resolved to stop borrowing this year, a development that will affect delivery of public services in the country.
Minister of Finance, Economic Planning and Development Goodall Gondwe told Times Television’s ‘Point Blank’ program on Tuesday that this is one of the practical measures that government will implement this year.
“We have been borrowing a lot of money. Previously, mainly in last year’s budget, we were borrowing at the rate of 50 or so billion per month.
“But we have now reduced to 6 billion per month starting from last December. This is a tremendous adjustment.
“At the time when IMF said we were off track that was with respect to financial year of 2014/15. This year we have made tremendous adjustments and we are now borrowing much less and our aim is to completely halt borrowing between now and June this year,” asserted Gondwe.
The Finance Minister said if they stop borrowing while budgetary support is not there, “we will have to adjust our expenditure and a number of some services will not be offered to the public”.
He added: “The consequences are clear. We will have to look at a number of some things where we need to have some cuts.”
Asked if that will not be a compromise on lives of Malawians, Gondwe said, “It’s what people have called sacrifices. All of us we have to sacrifice in order to make up for what has happened. You can’t just have cashgate and use all the money and hope life will be normal.
“We lost a lot of money through cashgate, and we had to borrow to make up for that.”
Gondwe further said government will come up with policy issues that would necessitate that everybody, including the Executive (President and Cabinet Ministers) faces the sacrifices that are needed.
The Finance Minister also took trouble to refute media reports claiming that he said that “the country’s economy is in God’s hands”.
“I don’t remember to have said that, it’s not in my vocabulary. Yes, everything is in God’s hands, but that is not what is said at all. It’s not in my vocabulary.
“The country’s economy is certainly firmly in government’s hands and certainly, we appeal to mighty God to help us to do the right things.
According to him, what the nation is passing through is not different from what a number of other countries [Tanzania, Thailand, Zambia and Korea, among others] are passing through.
“We will continue to adjust the national budget and balance the sums to get going.
“The fact that we are short of foreign exchange, it means we will have to take measures that will enable us to earn more foreign exchange to make up for what we have lost.
“We also hoped to have favorable weather to get enough food that the nation require and be in a position to reduce the inflation rate,” he explained.
He said if the inflation rate is reduced, “it is possible for us, more appropriately, to reduce the interest rates, and if interest rates are reduced, we will have an economy whose activities will be increased resulting in normal growth.”
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why shld we suffer coz of 577 CSO
Mr.Wa Ku Mitchesikujaa,could you name who are practicing corruption? Not of course,the ordinary law abinding citizens.Mr.Gondwe knows precisely who are the criminals.
I hope your question is rhetorical.
But just in case not … Report to you, Sir? Wasting my time?
FYI, I have reported more than one to the authorities in the past, and one “waiona Bangwe”.
What about you: What’s your story, Msowoya?
Thank you for listening and reacting in this way. We are all in this together. We all must fight for the betterment of this nation whether inside or outside govt. Near zero borrowing is the right thing for the govt to do given the circumstances of the economy. Next are two challenges for your evaluation. a) Balancing the primary deficit of govt budget by cutting costs except for critical items. This is for our national economy survival. You have alluded to that already so kudos on that path. b) the second and to me the most important aspect for this… Read more »
The minister is right to dissociate himself with the idea that “the country’s economy is in God’s hands” – a defeatist belief which is actually prevalent among Malawians. It discourages critical thinking, and encourages laziness in analyzing some of our critical problems. And, it is a result of ignorance of scientific thought, and overzealous attitudes based on our limited education, and therefore, limited understanding of religion. Note that Malawi is basically an uneducated society, by modern standards. No politician in Malawi will say, publicly, more than what minister Gondwe has intimated here; without getting his head chopped off, figuratively. Or… Read more »
Let’s get real with the consequences of cash gate. Non essential services provided by government and the attached positions have to go.
So the governments of the last three prz’s steal billions of kwachas, and borrow billions more from the chinese for hotels covention centre presidential villas that nobody uses and all those govt party people make tons of money from corruption, and now they want us to make sacrifices. fuckin joke!
@ Truck,
I think the money has to be made up by borrowing indeed since they are running away from convicting themselves over the same…eiiiiiiii sham.
the earlier they resign the better. we need a govt that will be able to confiscate cashgate proceeds.
Kkkk, the country is not in gods hand! That’s what we rationality coz no moron would leave something to any entity that DOESNT Exist! Clearly I find in hypocrite for you guys to pray when you know things need humans to be done and not to be done some spooky incompetent Jewish god, with his gayish son!
Let us remind Hon.Goodall Gondwe, we Malawians are suffering. We are hungry, we don’t have jobs. What our government can offer right now is a travelling passport so that we find other means outside the country. Malawians are all over the world looking for everything such as food, education, jobs and clothes. This shows that our government have failed to take responsibility of its people. It’s sense when we call for our leaders to resign. We don’t hate our president no. He is a good man with good heart for Malawians, and we know very well he loves us all.… Read more »
Gondwe and Mathanyula just put your tails between your legs and disappear into oblivion. Thanks, we are sick and tired of y ‘all