Malawi budget to be withdrawn for Chakwera government to present its first fiscal plan

The K2 trillion 2020/21 National Budget which is before Parliament may be withdrawn and allow a new Finance Minister to be appointed by incoming president Lazarus Chakwera who may be declared Malawi’s sixth president, to  table its fiscal plan to factor in its development plans.

The current Minister of Finance, Economic Planning and Development Joseph Mwanamvekha unveiled the ambitious budget on June 12 and parliamentary committees were last week deliberating the budget in clusters.

But Budget and Finance Committee of Parliament chairperson Sosten Gwengwe said  his committee will propose the budget withdrawal under a resolution for a provisional three-month budget for the new government. The annual budget calendar starts on July 1.

Chakwera  will be the Head of State and the current Vice-President Saulos Chilima—who is also UTM Party president—will remain in the position as he was the running mate to the winning presidential candidate for Tonse Alliance .

According to MCP sources, the new  budget wuld envisages fiscal management, revenue mobilisation, measures for economic stabilisation and growth, reduction in non-development expenditures and providing relief to the masses.

It will also focus on promoting investment for job creation and people friendly policies for the socio economic prosperity of the country.

The Chakwera administration  is likely to enhance allocations for social safety net for providing maximum relief to vulnerable segment of the society, including reflecting the fertiliser price of K4 450 per 50kg bag

Gwengwe said Parliament will have to pass a resolution authorising the next minister of finance to spend beyond 1st July.

“The new minister of finance should prepare a provisional budget, normally for four months,” said Gwengwe.

Speaker of the National Assembly Catherine Gotani Hara announced that Parliament will  reconvene on June 29 Monday  for continuation of debate on the proposed 2020/21 National Budget, which will now have to be withdrawn.

The House was supposed to pass the budget by June 30, the end of the government fiscal year.