Democratic Progressive Party (DPP) spokesperson on Finance, Joseph Mwanamvekha has implored government to put in place measures that will ensure that the country’s debts are reduced.
He said this in Parliament on Monday when political parties were giving in their inputs in the 2020/2021 fiscal year budget.
Mwanamvekha said if the debt doesn’t come down it will continue to suffocate the private sector.
“As we know that for the economy to grow, we need the private sector to be active. What we normally say is that the private sector is the engine of growth,” he said.
He said the fact that the Malawi Kwacha is depreciating, the interest rates in the country will be high.
“It will also lead to inflation and we will not be able to achieve the GDP that has been projected,” said Mwanamvekha.
He said government has almost doubled the borrowing from K315 billion to K754.8 billion. Mwanamvekha argued that by doubling the debt, the private sector will be overburdened.
The former Finance Minister also advised government to go back on the drawing board to engage International Monetary Fund (IMF).
Minister of Finance, Felix Mlusu presented a budget to the tune of MK2.190- trillion about two week ago for the 2020/2021 fiscal year which is about 30.6 per cent of the country’s Gross Domestic Product (GDP).