Goodall’s final budget boosts chances for Mutharika’s re-election: The pro-poor, youth focused and growth budget

Minister of Finance, Economic Planning and Development Goodall Gondwe has presented to Parliament the fifth and final budget of the government  pegged at K1.504 trillion that represents 28.2 percent of the country’s gross development product (GDP) and unpacked projects and subsequent expenditure programmes clearly aimed at boosting chances for President Peter Mutharika’s ruling Democratic Progressive Party (DPP) re-election next year.

Goodall’s focus on stimulating growth.

The budgets highlights that Malawi’s economic performance is higher than the average in the SADC region when looking at economic growth. Malawi tops the region with 4.1% GDP*compared to the rest of the countries whose growth forecast is below 2%, including bigger economies such as South Africa.

In 2017, Malawi was again the only country that achieved the highest growth rates in the region.

*2. STABLE ECONOMY WILL STIMULATE GROWTH AND LEAD TO JOB CREATION.*

Stable exchange rate coupled with the low levels of inflation will help the private sector to invest more to boost its productivity for exports, import substitution and job creation.

The government would continue establishing Special Economic Zones (SEZ) in the country, as a tool for attracting both Foreign Direct Investment and Domestic Investment into the industrial sector.

*3. GOVERNMENT CONTINUES WITH SERVICING THE POOR.*

Government is facilitating the implementation of *MAREP Phase 8* which is targeting to electrify *336 rural growth* centres through grid connection, thereby increasing access to electricity in the rural areas. Currently, construction works have been completed in *177 centres*.

Decent and Affordable Rural Housing Project received an *increase of 14.3 percent* in the budget. It is expected that from this amount about *8,000 houses* will be constructed and rehabilitated.

Local Councils Development Budget
An amount of K20.7 billion for Rural Development through Constituent Development Fund has seen an increase in allocation of the budget, this is targeted at community projects and rural development that could service some 300 Area Development Committees.

*4. FOCUS ON MALAWI’S DEVELOPMENT*

The development budget has been increased by *25.6 percent*.
The Agriculture sector, Transport, Education, and Health remain the major drivers in terms of development focus and priority in terms of the budget allocation.

*5. THE YEAR OF THE YOUTH – FOCUS ON YOUTH DEVELOPMENT AND JOBS FOR YOUTH*

Over *10,000 jobs for youth* through the Youth Tree Planting Program.

Qualified *5,000 youth* aged between 18 and 30 years, will be placed in various Ministries, Departments and Local
Councils through the Youth Internship programme. The objective of this program is to equip the youth with knowledge, skills and ethics as a way of nurturing them for a career in the Civil Service as well as in the Private Sector.

*6. GUARANTEED FOOD SECURITY FOR MALAWI*

Due to the natural disaster, armyworm attacks, the overall harvest is expected to experience a negative growth.

To ensure that there is adequate food for the affected households, Government has allocated K20 billion towards maize purchases and distribution.

Farm Input Subsidy Program (FISP) has received an increased budget allocation in the 2018/19 growing season. The program has been allocated K41.5 billion which will reach out to one million beneficiaries for both fertilizer and seeds.

*7. TAX RELIEF FOR LOW-INCOME EARNERS*

Tax-free income bracket under *Pay-As-You-Earn (PAYE) will be increased from MK30,000 to MK35,000 per month* in order to improve the disposable income of taxable salaried persons.

The budget was very balanced and more focused on poverty alleviation, jobs, and economic growth. This is a very difficult balancing act to achieve.

*8. CARING ABOUT CIVIL SERVANTS*
Junior civil servants will get a *20 percent salary increase* while senior civil servants will get 10 percent salary increment.

Follow and Subscribe Nyasa TV :

Sharing is caring!

Follow us in Twitter
16 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Whiso Blowa
Whiso Blowa
5 years ago

People already made up their minds not to vote again for dpp; ma blackout ake amenewa ndi umbava wawowu.

Dube
Dube
5 years ago

The pro-poor budget has silenced anti-Mutharika people.

Judge Chiotcha
Judge Chiotcha
5 years ago

Mwalemba apazi nzomwe mukuganiza osati zomwe zichitike. That’s why you’re even referring to GDP – Gross Domestic Product as “gross development product”.

All that K1.5t will go into Chaponda and Ben Phiri’s pockets. And that’s the point you are missing here.

Chilungamo
Chilungamo
5 years ago

Goodall’s budget indeed has to be pro-elections. He desperately needs APM to win because he knows he belongs to JAIL.
Goodall has a reputation of colluding with known crooks to LOOT state coffers. He has just circumvented justice by providing a FAKE forex license, signing an official document without a letterhead, rendered as court evidence, REALLY?
The KUTENGULE saga, dubiously selling of MSB at a give price, etc
Goodall is more detrimental to the country’s economy than career-criminals. He belongs to JAIL.
Shame on THIEVES!!!

Spinoza
5 years ago

Whether its politically motivated or not. But this is the way to go. After all everything is political Ku Malawi kuno

Ndendeuli
Ndendeuli
5 years ago

Kodi neba apa sakuchita comment bwanji? Budget akuswa?

Andrew
Andrew
5 years ago

It is strange budget, nothing to celebrate about! Maloto

Nalingula
Nalingula
5 years ago

Mama Callista Ku Malawi khuno boma limalemba ma Techala,Nurse,Doctors akatomaliza Sukulu .Zinatoyima pakatipa khaya ma Gogo Chalowa amatoganiza bwanji. Thanks to Chilima for waking them up with the Youth Movement. Ma youth chaka chodya money ndichimenechi.Kaya azitipasa ma 30000 tikazala mitengo tionesese kuti Tapanga ma Nursery a mitengo tokha.Abomawo atigule mitengoyo.Osati atilemererepo apa mkumati mitengo agula khale atapasana ma Contract okho okho.Misonkhoyi ndiyathu osaopa.

Binnwell Kachikopa
5 years ago

Thats very poor forecasting, Goodall Gondwe had been bringing fascinating budgets but everything goes haywire because a good portion of the budget gets stoled by him and his accomplices. To Sane Malawians, theres nothing strange in this budget, nthano zokhazokha. The only difference is that this budget has many loopholes where the thievery dpp can stole more than previous budgets. BUT GOD IS NOT MUTHARIKA, LA CHIFOTE LAYANDIKIRA, THESE DPP THIEVES HAVE TO GO AND DEFINATELY DPP IS GOING. THIS IS A BUCH OF THIEVES AND COWARDS. DEVILS CONDUITS AND UNPRINCIPLED IMMATURE SENILES

Kwita
Kwita
5 years ago

Ng’ona za Crocodile Party zonse kuti ziiiiiii. An egg bwaaaa kumaso.

Read previous post:
DPP’s Chaponda speaks out: Smear campaign fails, truth has come out

Malawi’s Former Minister of Agriculture, Irrigation and Water Development George Chaponda has spoken out for the first time  after being...

Close