Committee Of Supply Kick-Starts With Objections; Two Votes Deferred

The National Assembly begins Committee of Supply today with intense questioning over the Minister of Finance justifications on increments and reductions made to some Government ministries and departments.

At the very start, the Opposition members steered a lengthy debated with the Finance Minister, Goodall Gondwe on State Residences vote allocated with Five Hundred Billion and Ten Million Kwacha (K5, 010, 599, 320), from approved provision of Five Billion Four Hundred and Fourteen million Kwacha (K5, 414, 254, 201). 

Legislatures quizzed on the allocation of K110 million in the vote for the project of the construction of State Banquet in the face of economic problems but Finance Minister said the project has been shelved.

However, Gondwe was forced to defer the vote promising the House to bring more information after other members indicated that it appears Government wants to continue with the project as there is an allocation for that project.

Another vote, Office of the President and Cabinet was deferred for more explanations after the house had spent more than 30 minutes debating on it. 

The vote allocation has seen an increment of more than K3 Billion (allocated with K9, 720, 345, 944 from approved provision of K6, 595, 724, 601). 

Salima North, Jessie Kabwila, Rumphi East, Kamlepo Kalua among other legislatures inquired for more detailed explanation why there was such increment yet Malawi is going through hard times.

Others mentioned that the allocation was suspicious as there were no breakdowns of how the funds will be used while others described the allocation as another form of theft of public money by the office.

The House is considering and passing vote by vote of the revised budgetary allocation whose sum is now K902 Billion (Nine Hundred and Two Billion, Three Hundred Million and Fifty-One Thousand, One Hundred and Sixty-Eight Kwacha) from approved allocation of K929.7 billion 

Initially, the Minister announced that the revised budget will be reduced by K23 billion but now the reduction is by K20 billion. Finance Minister said K3 billion has been put back following member’s request not to reduce the provisions for Public Universities.

There are a total of 50 votes but today the house has only passed a total of 3 votes after the Leader of House, Francis Kasaila had asked the Chairperson to suspend the Committee of Supply following the disagreements in the House.

Gondwe being led into chamber (photo 2015)

The Committee of Supply began just after the Minister of Finance made his winding up speech on the Budget Review statement made two weeks ago.

Gondwe informed the House that Government proposal to reduce the budget was significant for the country to achieve a budget that which its recurrent expenditure is covered by domestic revenues.

“We propose that a start should be made now when the estimated tax is “soft” and the estimated grants whose increase is due to the depreciation of the Kwacha, are in fact even “softer”. Therefore to avoid excessive borrowing than planned, we have to cut the expenditure. 

Mr. Speaker Sir, the house and the country should pose and digest that we may no longer appeal to donors for extra budgetary support to fund unforeseen deficits, means that we have the luxury of inflating our public expenditure with less priority expenses.” Said Gondwe, further expressing wish for future budget that entail survey of ways and means of mobilising more domestic revenues and the cutting of less priority expenditures so as to avoid domestic borrowing

“The arguments that were made that reducing the budgetary expenditure will reduce public welfare is misplaced because excessive domestic borrowing will have even prolonged negative impact of on welfare of the people. As a matter of policy we will have to mitigate our reliance on borrowing from our banks and should no longer be deem banks as quasi fiscal agents.” He added