A team of International Monetary Fund (IMF) has predicted of tough economic times ahead because the Democratic Progressive Party (DPP) is off course having bloated its public service and accumulated a huge debt.
Head of the IMF review team Oral Williams has expressed concern over the huge debt the government continues incur against the advice of the IMF.
“There is unjustifiable overspending in government. If not controlled, the economy will collaspse,” said Williams.
He said the bloated civil service has pushed the wage bill up, out of control.
“Malawi is yet to regain its course,” said Williams after his team was in the country for the economic review for the past two weeks.
He said Malawi government expenditures remain high and advised the government to spend within its resources.
Williams said the size of the government is too big compared to its financial resources, dismissing the government assertions that it is collecting enough.
“There is need to bring the size of the government down,” Williams said.
Finance minister Goodall Gondwe agreed with the IMF team observations.
However he said some of the issues were politically sensitive.
Gondwe gave an example of some public officers, top civil servants including principal secretaries, commissioners, paratatal chief executive officers and judges whom he said get a vehicle each, 500l of fuel each, a driver each and maintenance for the vehicles which he said costs a colossal amount of money.
He said these benefits are promised to the people when they are hired and it could be politically insestive to take them away.