Opposition PP, MCP Holds Different Opinion Over 2015/2016 Budget

Finanance Minister Goodall Gondwe

The two main opposition parties in Parliament have different opinion regarding hope that 2015/2016 financial year budget estimates will promote investiment and production.

Finance Minister Honorable Goodall Gondwe on Friday, announced K901.6 Billion budget estimates which the minister said will be domestically financed and other social sectors will be supported through off-budget from donors. 

Both, Malawi Congress Party (MCP) and Peoples Party (PP) had expectations that the budget shall allocate more resources for investiments and incentives for businesses.

The finance Minister announced that from K901.6 billion, the recurrent expenditure will be K674.6 billion, while development expenditure will amount to K224.0 billion from revised K189.2 billion in 2014/15 budget.

Gondwe said from this Development expenditure, some K173.0 billion will be funded by external resources (development Part I), while K50.0 billion will be funded using domestic resources (development Part II).

“Yes somehow we see positive steps because we can see that about 26% of the budget will be for the development” reacted Ralph Jooma PP spokesperson on Finance matters in parliament and acknowledged government saying it is a way to go for economic progress.

He said is happy to note that K5 billion will be forwarded to councils to address issues of grassroots development, K6.5 billion for the improvement of city roads, while K3 billion for students loan and grants.

Hon Ralph Jooma: This is an investment based
Budget 

He further noted with appraisal that awarding of contracts will be based on assessing number of Malawians to be employed by the company saying this will empower a lot of Malawians.

However, Jooma did not welcome Finance Minister’s decision to allocate few resources to some social sectors because are to receive off-budget funding. Hon Jooma said such is a worry some development since off-budget from donors are often unreliable and moreover, government has no control over such support including on selecting priority areas to which such support should be directed to.

“We can’t rely on that” he said, “As members of Parliament I think we should look at budget and not anything off-budget financing”

He also demands the explanation of the breaking of the allocated K7 billion for decent houses of which the minister admitted that only K2 billion has been used.

Malawi Congress Party (MCP) who earlier said expected the budget that; is explicit on how government intends to solve mess in Subsidy programme; offer incentives to businesses and clears outstanding arrears, has described the whole budget as “Not Pro-Poor and not stimulating Productivity.”

Hon Joseph Njobvuyalema: This is not pro-poor
Budget and does not promote productivity

In his view, Hon Joseph Njobvuyalema MCP spokesperson on finance matters in parliament says “Government should look at real sectors in the country which would promote growth and productivity. That’s not what we have done and it is disappointing”

He said though the budget has allocated more resources to Agriculture, it fall short of comprehensive strategies to sustain the sector in times of calamities especially droughts. He suggested that the budget should have emphasized on irrigation.

The MCP spokesperson emphasized that this budget should have put much focus on strategically allocating resources as means to boost the productivity in agriculture especially on irrigation schemes, commercializing the sector, livestock production even on the tourism and mining sectors.

“The poor people will not benefit” he said, “Mostly they are also budgeting on off-budget, donations these things are outside our plans and we cannot trust that they can stimulate our productivity.” 

He said government has misdirected its priorities in the budget which he also said the budget has only reflected views of professionals and not poor Malawians “It is a very disappointing plan” he added.

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MCP, PP Expects Investment Based Budget

Minister of Finance, Economic Planning and Development is expected this afternoon to present 2015/2016 National Budget in the National Assembly.

Hon Goodall Gondwe is to present a budget statement whose estimates are approximately up to K900 billion.

Expectations from Malawi Congress Party and Peoples Party

Two major opposition parties spokesperson on finance matters in the national assembly have emphasized that government should bring budget that outlines how it intends to promote productivity and less consumption.

According to Peoples Party (PP) Spokesperson on Budget and Finance Matters in the National Assembly honorable Ralph Jooma, this year's budget has to provide not less than 30% to investment and development with minimal allocation to consumption.

"It must be investment budget otherwise we are going to continue facing a lot of problems in this country." Said Jooma

He noted that focus on investments will help Malawi to realise the growth of private sector and alleviate poverty among Malawians rather than budget which focus more on consumption. He said saving little by little will see Malawi in five year time have stable economy.

Similarly, MCP spokesman for Finance matters in parliament honorable Joseph Njobvuyalema said he expects budget which focus much on Incentives for businesses as one way of enhancing economic productivity.

He also mentioned that since government has expressed its continued focus on Subsidy Programme, this year's budget will not add up to anything if there is no clear explanation as well as effective outline of how the mess that characterised the Subsidy Programmes shall be wipeout out so that it benefits Malawians.

Hon Jobvuyalema also expects to hear how government will sort out its outstanding arrears with various companies.

National Assembly Approves K769.2 billion:

Appropriation Bill Expected This Afternoon

The Malawi National Assembly’s Committee of Supply has approved the Supplementary Budget of 2014/2015 Financial Year which the governement was seeking additional resources amounting to K32 billion.

The house in the morning of Tuesday has approved sum of K769.2 billion to be part of the Consolidated Recurrent and Capital Accounts for the purpose set out in the Revised Recurrent and Capital Estimates.

Afternoon of the day the house will convene to pass the Supplementary Appropriation Bill of 2014-2015 financial year.

The house approved 57 votes with two amendments on votes which were deferred on Monday; Directorate of Public Prosecution and State Advocate (DPP office) and Legal Aid Department. This follows a reversal of what Finance Minister said on Monday evening that he is not going to change figures for the deferred votes. However, The Road Fund Administration vote which was deferred on last week Friday has been passed with same figures which members had protested against.

Before passing the two amended votes, some parliamentarians expressed dissatisfaction that the Minister of Finance had announced the change without providing the House with Supplementary Order Paper to indicate the changes that were made.

This subsequently saw the Lilongwe Mapuyu-South Parliamentarian, Hon. Joseph Njobvuyalema and Former vice President of The Republic of Malawi who is also the legislature for Mzimba South-West, Khumbo Kachali standing on point of order, expressing that government has flouted procedure.

In an interview, Njobvu yalema said: “Fortunately government has admitted that indeed that, it flouted  procedure of Section 57 of the constitution, which states that, any amendment of to the budget figures or activities has to be in writing by the Minister of Finance himself”

“This time around he did not do it and am not happy that the Minister did flout the procedure.”

Njobvuyalema said, since the decision to continue with the verbal approval of the budget resources was a consensus of the whole house, which “is supreme” he is impatiently waiting to see that the Appropriation Bill to be presented this afternoon has all the two amended votes.

 

Goodall Gondwe

“I didn’t broke procedures,” Said Gondwe, justifying that this is why the supplementary budget has been approved.

On changes made to two votes Gondwe said: “I could have said the let things stay as they are. But I found that probably we should maintain the figure for the Director of Public Prosecutions by returning it to its approved figure and not reduce it by K50 million. Similarly, the Legal Aid Department, which its allocation was being reduced by K16 million has also returned to its approved figure.

“The total amount is K67 million and I am reducing the Statutory vote of compensation by that amount and increase the K67 million on the two votes and I reduced the Compensation amount and that’s how the whole budget balances” he said.

(Munthu Wakuda Leo contributed part of the information in this story)

No Increment to Deferred Votes- Finance Minister

As Committee of Supply Deferred 2 More Votes on Monday

Finance, Economic Planning and Development Minister says he is not going to make any increment to votes being deferred by the National Assembly in the ongoing Committee of Supply.

On Monday evening the Committee of Supply has deferred two votes bringing total number of deferred votes to three following Road Fund Administration vote which was deferred on Friday for having meager allocation.

The two deferred votes are Directorate of Public Prosecution and State Advocate (DPP office) vote which has a revised allocation of K462.3 million from approved provision of K495.7 million and the Legal Aid Department vote which has been deferred by Finance Minister himself without explanation. The vote has an allocation of K210.4 million a revision from approved K227.3 million.

Goodall Gondwe

Reacting to Malawi Voice question if he is going to make some increment to the DPP office vote, Gondwe was quick to say No, no, no.., I hope to convince them some more

Gondwes response is apparent following Mondays Order Paper where Road Fund Administration vote which was deferred on Friday appeared having same figures of revised allocation of K23. 8 billion from approved provision of K25.87 billion.

The Committee of Supply on Monday deferred DPP office vote for having a reduction of up to K50 million. This prompted much debate in the house as opposition members felt the deduction could result into the interference with the work of DPP particularly on prosecution of ongoing cash gate cases.

Members of Parliament for Lilongwe Msinja South Lingson  Belekanyama, Lilongwe Mapuyu South Joseph Njobvuyalema as well as Salima South parliamentarian Uladi Mussa were among the first parliamentarians to inquire from the finance minister why DPP office has been given a meager allocation yet it is responsible in handling very important cases of Cash gate.

Uladi Mussa said the office needed more funding for its obligation of prosecuting cases and therefore allocating little resources to the office will result into inefficiency of government lawyers who may at times fail to attend court sessions for lack of resources like fuel.

Hon. Njobvuyalema at some point said allocating enough resources to DPP office is not only crucial for smooth prosecution of cash gate cases but also vital in bringing back donors confidence.

However, before deferring the vote Gondwe together with Minister of Justice and Constitution Affairs Samuel Tembenu maintained that the allocation was enough at the moment and assured that the allocated amount will not suffocate ongoing cash gate prosecution.

Gondwe said should the department say they want to have more money during the next four or five months Ministry of Finance will make money available to the department But for the time being I would not want to see money lie idle when it can be used somewhere

Only six votes are expected to be passed this Tuesday and later the committee will pass Supplementary Appropriation Bill.

Though the Committee of Supply managed to pass 14 votes on Monday, business of the committee was too slow as compared to Thursday and Friday sitting. This was because members had a lot of questions on how the Ministry of Finance arrived upon each vote allocated to government departments and ministries.