President Peter Mutharika has opened the 2017/18 budget session of parliament in Lilongwe and immediately acknowledged the US$80 million World Bank budgetary support is vote of confidence in his administration.
This is the first time budget support financing approved by the World Bank for Malawi in four years.
In his one and half hour state of the nation address, Mutharika assured Malawians that the economy is set for a rebound.
He said the government is implementing a strict fiscal policy to ensure that the economy gets to its feet again and cited the World Bank move for the budgetary support as a sign the tight fiscal policies are yielding results.
IMF, World Bank and other donors stopped giving the budgetary support after the infamous 2013 cash-gate during the Joyce Banda regime.
He said inflation is headed to a single digit after its dramatic fall to 15.8% from 16.1%.
“We will achieve a single digit inflation by the end of next year,” he said.
The inflation was at 21.5% in May 2016 and rose to 23.5% in July 2016.
Mutharika said the Malawi Revenue Authority has collected K783 million against a target of K840 million which he said is a very good improvement.
However he has not commented on allegations that he used the tax payer funded state revenue collector to harass and silence media organisations, individuals or orgaisations deemed critical of the government.
The members will sit up to June 30 and among other key issues, they will deliberate and pass this year’s national budget.Follow and Subscribe Nyasa TV :