Public Finance Managent Reforms May Return Donor Support to Malawi

The European Union (EU) has given hope that Malawi may secure budgetary support from its bilateral donors if the country successifuly implement Public Sector Management Reforms.

Malawi is rebuilding itself by implementing number of reforms including tightening public finance management having lost budgetary support from bilateral donors following scandal which revealed massive theft of public money by public officers dubbed cashgate.

And when presenting K901.6 billion 2015/2016 budget statement, Finance Minister Goodall Gondwe indicated that donors are not coming back soon and that the budget has been framed with a view that Malawi will use its domestic resources to finance activities. He also mentioned that that some social sectors shall receive additional funding through off-budget.

Head of EU Delegation to Malawi, Ambassador Marchel Gerrmann said donors are eager to support Malawi to achieve its objectives.

"There is still an option of budget support. If the minister is implementing the public finance management reforms then also the next option is available.” Ambassador Gerrmann said, “Often times is important that definitely Malawi will stand on its own feet where it will have to find from domestic resources for its programmes."

But he also noted that in the mean time there is a lot of support coming through off-budget supporting government priorities.

"A lot of it is also mentioned from this budget and I think that is step forward of the minister as compared to previous year. I think that the minister is quite transparent of the support of the donors in the budget and that is appreciative." said His Excellence Gerrmann

He also commended that the financial situation of the government this year will be tight as Minister said that there is not to be much room to maneuver.

"I believed that the minister mentioned a number of important reforms in particular reform of FISP. I think it is very important that this programme is reformed and we are looking forward to that." Said Ambassador Gerrmann, who continued "The other important of reforms is Public Finance Management Reforms. I believe that that implementation of PFMR is crucial to restore confidence in the public finance in the government."

The he assured that development partners will from their end, support government in trying to achieve its objectives.