Seek concessional support, IMF urges

2020/21 budget to focus on recovery

Post was last updated: May 6, 2020

GOVERNMENT HAS STRUCTURES—Banda

Treasury has said key contributors into the 2020/21 National Budget are suggesting that the next financial plan should focus on recovery from possible effects of Covid-19 pandemic.

Ministry of Finance spokesperson, Williams Banda, said stakeholders feel that the pandemic will have grave effects to the economy.

He was commenting after the ministry finished consolidation of views to be incorporated into the next budget.

“The process has been impressive and most want us to widen the tax base and are encouraging that the next budget should focus on economic recovery after Covid-19.

“We are looking at those contributions critically and see the way how we want to shape the next budget,” Banda said.

He said the Treasury is still reviewing the views before it starts formulating the budget.

Commentators say the next budget should focus on fixing Malawi’s volatile economy, where businesses remain subdued and most sectors are not ticking,

Fiscal pressure, unpredictability of budget support, procurement hurdles, and poor public finance management are among key risks facing the economy and the next budget’s implementation.

Institute of Chartered Accountants in Malawi (Icam) for instance suggests that the next budget would have to outline a possible recovery plan from exogenous shocks including Covid-19 pandemic.

In a recent interview, Employers Consultative Association of Malawi president George Khaki said the employers in the country expect the government to channel more resources towards the recovery of the economy.

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