One of the business and economic commentators in the country, Henry Kachaje who is also president of Economic Association of Malawi (Ecama) has said the use of a zero-aid budget is a sign of maturity for Malawi.
Kachaje said this in an interview with the Malawi News Agency (Mana) on Monday when asked to comment on what Malawians should expect from the budget due for presentation tomorrow.
He said with donors not showing any willingness of pumping in money, it was indeed proper for the country to have a budget funded by its own resources.
Kachaje however, said much as the move is a good development, Malawians should expect tough times ahead saying forex will be in short supply because of this.
“When donors give aid to a country, it normally comes in form of foreign currency. Now with this situation, it means the country should anticipate forex shortages,” he said.
Kachaje explained that it is this foreign currency that reduces deficit of balance of payment (BOP) adding that the budget is therefore expected to be a tough one.
He, nonetheless ,gave the Finance Minister, Goodall Gondwe a benefit of doubt saying people should wait and see how the budget has been formulated after it is presented Tuesday.
During a rally held at Njamba Freedom Park in Blantyre on Sunday, President Professor Peter Mutharika said Malawi will be using a zero-aid budget in the 2014/2015 fiscal year.
The Minister of finance, Goodall Gondwe is expected to present the budget pegged at about K700 billion tomorrow, Tuesday.
This will be the second time for Malawi to run a zero-deficit budget. The first one was in the 2011/2012 fiscal year initiated by late President Professor Bingu wa Mutharika.