Finance, Economic Planning and Development Minister, Joseph Mwanamvekha, is today expected to present to Parliament his maiden full fiscal plan covering the 2019/20 financial year.
The budget presentation comes after Mwanamvenkha presented a K511.3 billion provisional budget which allowed the Treasury to tap funds from the Consolidated Account to carry on government services from July 1 to October 31 2019.
The interim budget is about 36 percent of the 2018/19 revised fiscal plan of K1.429 trillion.
The full-budget presentation also comes amid pressure from economists and other commentators to see Malawi developing an investment-oriented budget and depart from the traditional consumption fiscal plan.
In many years, the country’s budget has largely been focusing on consumption other than investment and development.
Speaking in an interview Sunday, Economics Association of Malawi President, Chiku Kalilombe, said Ecama expected a balanced budget with realistic revenue expectations and expenditure within such.
He said he expected Mwanamvekha to present a financial plan that would spar economic growth and sustainable development.
“We are wary of deficits considering country’s borrowing levels are too high. Then we also look at development expenditure that spurs growth. This is like expenditure into energy, for example, that helps us sort a big constraint to the country’s economic growth,” Kalilombe said.
In an earlier interview, Mwanamvekha outlined about five key areas of investment in the coming budget including improved agriculture production, energy sector development, tourism, minding and education.
“Malawi is agriculture-based; so, we want to make sure that production and productivity improve and we want to emphasise agro-processing. Secondly, we want to invest much in energy to deal with power shortages.
“We are also going to look at tourism, trade facilitation and mining. Malawi has great potential to develop the mining sector there are a number of sectors that we are looking at,” Mwanamvekha said.
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