Goodall raises budget to K930bn
Minister of Finance, Economic Planning and Development Goodall Gondwe has raised the proposed 2015/16 National Budget from K901.6 billion to K930 billion (US$2.1 billion) to meet increasing demands in the education sector and the Judiciary.
In his speech winding up debate on the budget in Parliament on Monday, Gondwe reacted to criticism of his proposed budget, including remarks that it was illegal and contradicted the State of the Nation Address delivered by President Peter Mutharika last month.
The minister also defended the public service wage bill which he said was within internationally-acceptable standards of below 25 percent of the national budget and between six and nine percent of the gross domestic product (GDP).
Further, Gondwe defended the government’s reliance on off-budget donor support which he said has been in practice for about five years now.
He said: “Without it [off-budget support], in the wake of Cashgate, donor support would have dwindled to a halt. Such support is integrated into the budget planning.”
Gondwe has increased allocation to public universities by K3 billion (US$6.7 million) after changing his mind on the withdrawal of allowances to students.
In his revised budget, the National Registration Bureau has had its allocation increased with K1.5 billion (US$3.3 million) after the initial K155 million (US$344 444) allocation while the Malawi Police Service will receive an additional K2.8 billion (US$6.2 million) on top of the proposed K21.5 billion (US$6.2 million) to procure equipment for combating crime.
Gondwe has heeded the cry from the Judiciary for additional funds and allocated an additional K1.5 billion (US$3.3 million).
Members of Parliament (MPs) loudly clapped hands when Gondwe announced a K3 million increase to the Constituency Development Fund (CDF) to reach K12 million (US$26 667), but they ignored the corresponding decrease to the Local Development Fund (LDF).
Parliament entered into the Committee of Supply where MPs pass vote by vote before passing the Appropriation Bill authorising government to spend.
The new financial year starts on July 1.
