Economic Experts Urge Govt To Allocate More Resources for Investment

Hon Goodall Gondwe being led by
Sergeant at Arms into the Chamber to
Present 2015/2016 budget 

The budget statement for the financial year 2015/2016 continues to receive varied response among politicians and experts, but one thing in common has been a more emphasis on the need to start framing budget that focuses on stimulating productivity and investments.

The K901.6 billion budget estimates presented last Friday by hon Goodall Gondwe, the Finance Minister, has an allocation of K224 billion for development expenditure. 

Henry Kachaje 

President of the Economics Association of Malawi (Ecama) Henry Kachaje, observed that the budget lacks emphasis on investments in the economically productive sectors. He said, now that donors are not likely to support Malawi in its budget, a focus on investment is the right option for Malawi economy.

He further noted that Economic growth which the Minister indicated in the statement is not substantiated by factual evidence of where that growth would come from adding that in a number of areas, the minister was failing short of committing the reforms government is going to undertake by this budget.

“It’s a budget statement that has left us still wondering whether what we are hoping to achieve as a country may be achieved” said Kachaje, as he referred to the Finance Minister's emphasis of hope for resumption of donor aid while acknowledging unlikeliness of their comeback soon.

Dalitso Kubalasa 

Dalitso Kubalasa, Executive Director for Malawi Economic Justice Network (MEJN) 2015/2016 said this budget statement was interesting not so much as a surprising statement because of Finance Minister’s acknowledgement of known tough things Malawi is still sailing through.

But he said the budget has some courageous decisions and very cautious on what is been committed in this budget.

A bit different from Kachaje observation, Kubalasa noted that government has prioritized economically productive areas including the need for further input from stakeholders on challenges facing the fertilizer subsidy programme.

“Another striking element of the budget though no details were explicitly made is on Input subsidy programme where government is acknowledging challenges facing the programme and the need to discuss them with stakeholders.” said Kubalasa