Malawi borrowing too much — Opposition MCP, UDF

Malawi Congress Party (MCP) and United Democratic Front (UDF) have given official response to the 2019/20 national budget statement in Parliament as UTM and People’s Party (PP) will not be making formal statements as parties owing to their diminutive number in the House according to Standing Order 190(1) (d).

Kajawa: Malawi debt has more than doubled

Presenting an official response on behalf of MCP, Member of Parliament (MP) for Lilongwe Mpenu Nkhoma Collins Kajawa bemoaned the country’s borrowing levels.

“Our debt has more than doubled from just over 30 percent of GDP (Gross Domestic Product) in 2009 to 62 percent of GDP at the moment,” Kajawa said.

“The tendency of continuing to spend as if everything is normal even when revenues show an early and clear trajectory that they will fall short of projected levels is worth remembering,” he said.

Kajawa said Malawi debt composition has progressively shifted from external to the more expensive domestic borrowing due to, among others, sustained large fiscal deficits and careless securitization of domestic arrears.

He said the increasing national debt is affecting the private sector because government borrows a lot from commercial banks where the private sector also borrows which in turn leaves the private sector servicing exorbitant interests.

Kajawa, therefore, suggested that the country focuses on borrowing for investment rather than for consumption.

On his part, UDF spokesman on finance, Blantyre Malabada Member of Parliament, Ishmael Nkumba, also expressed concern that the country’s borrowing has reached “alarming levels” as the country’s debts have gone beyond the fiscal policy.

“UDF says government needs to be avoiding debts which do not bring any tangible development to the country citing the infamous India line of credit where government bought tractors only to realise that it no longer needed them,” said Nkumba.

Chairperson of the Budget and Finance Committee of Parliament, Sosten Gwengwe, also asked government to live within the means to avoid budget deficit, which leads to unnecessary borrowing.

Malawi’s debt levels have reached worrying levels such that recently the Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe advised Treasury to contain the rate of borrowing.

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OPEN EYS MW
2 years ago

It looks simple when its time to borrow but when it comes to recover those loans, the burden is left for us Malawians. It could have been better for you the law makers, to ask us as Malawians before you make a decision to borrow money. Take a step please

Mapwiya
Mapwiya
2 years ago

Ngongolani muzigula ma galimoto odula ife tilibe ndi njinga zomwe!!!!! Useless MP’s

Levious
2 years ago

Lack of infrasctural investments plans really will drive this country to deeper and worst credit country.
Investing in Infrasctural projects will attract foreign and local investors to pump more revenue into the treasury pockets.
Failing on Roade network
and Energy inftasctural projects won’t takethis Malawi anywhere.

Doba Doba
2 years ago

our political leaders are full time ISCARIOTS like jane ansah and cadets —-they just shared 4 Billion each in parliament —–Where did they borrow it from ?? Who is going to pay it back ?? What development have they accomplished with those monies ?? you want us to be watching and just smiling at them ? No NO NO ! MTAMBO IS RIGHT !!

HRLGBT/LGBTIQ
HRLGBT/LGBTIQ
2 years ago

Wasalileee!

Maness Mandebvu
Maness Mandebvu
2 years ago

Achilima alibe mphamvu pano mchitsilu chamunthu kwabasi

Ndendeuli
Ndendeuli
2 years ago

Ndiwe galu kwabasi

Charie
Charie
2 years ago

Chilima ndimamuvera chisoni kutaya chikwama zoona Vice president kkkkkk udalitso umaposa pamenepa

Doba Doba
2 years ago
Reply to  Charie

Cry for yourself plus your family and poor Malawians not chilima —

Charie
Charie
2 years ago
Reply to  Doba Doba

Ine nde ndili boh heavy ndi banja langa tose timadya boh,pogona pa boh,zovala nde sinkhani kaya iwe mzanga wolimbikira mtunda wopanda mudzi ndi midwedwe yakoko chilima ndi chakwera

Jhchirrachi
Jhchirrachi
2 years ago

The problem with our Parliamentarians is that many of them NDI MBULI they dont know what they are voting for and its implication in future when they die.

Usawi Kwana
Usawi Kwana
2 years ago
Reply to  Jhchirrachi

Mind what you say. There are some in this house more educated than you. If you’re more educated then why are you not elected as an MP. This kind of thinking won’t take us anywhere.

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