Thursday, May 19, 2022
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Economists tip treasury on social cash transfer

by Grace Phiri
28/08/2021
in Business News, Front Page
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

The Economists Association of Malawi (Ecam) says government needs to implement other initiatives to, among others, avoid duplication and ensure sustainability of the social cash transfer programmes in the country.

Ecam executive director Frank Chikuta told Business News that this is to ensure growth in the social protection bill by targeting only the intended beneficiaries and seal leakages.

Chikuta observed that as the economy grows, a gradual increment in the government’s contribution to the social protection programmes is possible, with minimal impact on the sustainability of both the social programmes and the fiscal framework.

The poor need protection through social cash transfers

He said: “Ideally, national social protection programmes should be financed by the government, because donor support is subject to sudden decreases as it depends on the financial status of the donor and demand for the same resources in other countries.

“However, given the current state of our economy, donor support is still very critical to the implementation of the programmes.”

The sentiments follow revelations from the United Nations Children’s Education Fund (Unicef) that the need to maintain the sector at the status quo (supporting only the bottom 10 percent of ultra-poor and labour constrained households across the country with no seasonal and emergency top-ups) would require approximately K24 billion.

This is despite Treasury increasing its funding to the social cash transfer programme (SCTP) from K650 million in 2016/17 to about K3 billion in 2020/21.

According to Unicef, over 90 percent of the on-budget social protection resources are from donors.

In relative terms, government has been contributing an average of five percent to the funding of the SCTP between fiscal years 2017/18 and 2018/19, with the huge chunk (95 percent) of the SCTP resources coming from donors.

In the 2020/21 financial year, K37 billion (92 percent) of the on-budget social protection resources were financed through an on-budget grant.

For instance, as of 2020/21, government was contributing to the funding of only one district under the SCTP.

Meanwhile, funding from the German Government, through KfW, is expected to expire in June 2022, while funding from the EU, will expire in February 2024.

In contrast, funding from the World Bank, Irish Aid and the Government will last until fiscal year 2024/25.

In an interview earlier, Minister of Finance Felix Mlusu said the Covid-19 pandemic was making sustainability difficult as economies had to recover first.

He said: “With the ravages of the Covid-19 to the world economy, it would be difficult for any country to sustain expected levels.”

The SCTP is oriented towards the extremely poor, covering about seven percent of the national population as of 2020, while the Government recognises that 51.5 percent of the population lives in poverty and 20.1 percent are extremely poor.

Previous Post

Chakwera is strong on foreign policy—by far

Next Post

DaBaby cancelled over HIV comments

Related Posts

Newly-elected Lilongwe City Mayor Banda(R) and his deputy Esther Sagawa
Front Page

Mayors may face ballots

May 19, 2022
Front Page

Petra warns parties on endorsements

May 19, 2022
His case to proceed: Muluzi
Front Page

Muluzi, state in endless match

May 18, 2022
Next Post

DaBaby cancelled over HIV comments

Opinions and Columns

Candid Talk

Know your place in his/her life

May 15, 2022
People’s Tribunal

Why can’t we start with implementing the reforms?

May 15, 2022
Big Man Wamkulu

My wife is a WhatsApp addict

May 15, 2022
My Thought

Two years of nothing but development rallies

May 15, 2022

Trending Stories

  • CAF accepts FAM’s request on Flames fixture shift

    0 shares
    Share 0 Tweet 0
  • UTM party vehicle issue goes to MRA

    0 shares
    Share 0 Tweet 0
  • Muluzi, state in endless match

    0 shares
    Share 0 Tweet 0
  • Road traffic spot fines on way out

    0 shares
    Share 0 Tweet 0
  • Cooking oil shortage hits Malawi

    0 shares
    Share 0 Tweet 0

Malawi-Music.com Top10

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.