MCP will change Malawi financial year – Chakwera

Malawi Congress Party (MCP) president Lazarus Chakwera has said when elected to power next year, his government will  change the financial year to the months of April and March.

Since 2010, the country has been running on national budgets running from July 1 to June 30—a cycle some argue that negatively affects annual procurement of agricultural inputs and government spending when it comes to electoral years.

Speaking during his northern region tour, Chakwera said MCP  will be changing the fiscal year since the current cycle coincides with the growing season.

“The  financial year would start from April [1] to March [31] . MCP wants to realign the financial year with the needs of the predominantly agricultural economy,” said Chakwera.

Chakwera said  also expressed sadness that  at least 3.3 million Malawians will be food insecure this year following a 28.4 percent decrease in maize production as projected by  a report by the 2018 Malawi Vulnerability Assessment Committee (Mvac) .

For this, government will need to raise about K23.5 billion to buy the required 138 488 metric tonnes (MT) of maize to feed the people.

Government allocated K7 billion in the 2018/19 national budget to cater for relief food, leaving a K13.8 billion deficit.

Chakwera said the Farm Input Subsidy Programme (Fisp) has failed said MCP administration  will  find a permanent solution to address chronic food insecurity with introduction of universal fertiliser subsidy.

He said Fisp has failed to address food insecurity as it benefits the same people who are also targeted with relief food items.