Malawi Government cautioned on public expenditure
Malawi Government has been advised to trim its high expenditure and borrowing appetite to ensure successful implementation of the national budget.
Chief Executive Officer of the Institute of Chartered Accountants in Malawi (Icam) Evelyn Mwapasa made the call in Blantyre during the 2015/16 pre-budget consultation meetings.
She said while the government usually demonstrates an understanding of the need for fiscal prudence, experience has shown that it easily derails.
“We saw the need to reiterate this point after noting the big increase in the wage bill in the current year, among other things,” she said.
Mwapasa said if the situation continues as it is, the budget framework will not be sustainable.
She said discipline in budget expenditure and reduced borrowing appetite would in turn also have positive impact on exchange rate and interest rate positions.
“Fluctuations in interest rates are hurting hard. We suggest that there should be some stability and that can be achieved by controlled expenditure and debt levels,” she said.
In his reaction, Finance Minister Goodall Gondwe said government is committed to always spend within the budget ceiling.
“However, some debts are very necessary for us like the soft loans. The pledge we can make is to exercise caution,” said Gondwe.
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