Finance Minister Goodall Gondwe has unveiled a K1.2 trillion national budget up from K917 billion last year as the country increasingly continue to face huge economic problems and persistent food shortages due to natural disasters.
Good news, however is that Gondwe assured the 193-strong House that the World Bank and European Union will resume budgetary support within the year.
He however asked the revenue collector, the Malawi Revenue Authority to pull up its socks and collect more money for the government to provide its services effectively and efficiently in the absence of donors.
The ministry of Agriculture has been allocated K198.5 billion seconded by the ministry of Education which has been allocated K147.6 billion and the Health ministry will get K95.8 billion.
Eight per cent of the budget resources will be locally generated.
Gondwe also announced strict measures to prevent the plunder of public resources which include the introduction of inspectors in ministry which draw huge sums of money from the national budget.
He also said employment of civil servants will continue to be pending except some 10500 primary school teachers, over 400 secondary school teachers, health workers and people in security agents of police and military.
Gondwe also said the government will increase civil servants salaries by an average of 15 per cent despite economic problems facing the country.
He said the government will rule out irrigation projects across the country, asking Malawians to change their mindset so that they can start farming for half a year instead of the current three months.
US ambassador to Malawi Virginia Palmer, UK High Commissioner to Malawi Michael Nevin and Economics Association of Malawi president Henry Kachaje welcomed the budget.
They said the budget was ideal in the challenging times Malawi is facing.
The budget however puts the inflation rate at 17.4 per cent.Follow and Subscribe Nyasa TV :