Goodall defends 2015/16 budget

Minister of Finance, Economic Planning and Development Goodall Gondwe has defended his proposed 2015/16 National Budget which some commentators and members of Parliament (MPs) have described as a consumption plan.

The minister said through the budget, he has managed to keep the development allocation at the internationally recommended 25 percent of the total budget.

In his winding-up speech on debate on the projections delivered in Parliament on Monday, Gondwe said the development expenditure was about eight percent, which is above the minimum of six percent of gross domestic product (GDP).

However, Gondwe promised to do better next year on the priority sectors such as tourism, trade and industry, mining and energy.

But on criticism that there is little allocation to the development of the tourism sector, the minister responded that the private sector was better placed to contribute to its growth through the construction of hotels.

Said Gondwe: “Therefore, the fact that such sectors have not attracted larger allocations does not mean that the budget does not indicate that these sectors have been prioritised.”

MPs are currently scrutinising the allocations vote by vote with no indication of dissent.

The proposed 2015/16 National Budget has increased from K901 billion (US$2 billion) to K930 billion (US$2.1 billion) pending approval by the House.