MCP outlines Mid-Year Budget Review expectations
When the National Assembly meets for the Mid-Year Budget Review—from February 5 to March 31—Malawi Congress Party (MCP) has said it will ask government to divert travel and Malata and Cement Subsidy Programme funds to fight fall armyworms.
In an interview in Lilongwe on Thursday, MCP spokesperson on Finance Alexander Kusamba Dzonzi said the country’s economic growth, projected at seven percent by Minister of Finance, Economic Planning and Development Goodall Gondwe, will be hampered by challenges it is facing and affecting production.
He also mentioned prolonged power outages, erratic rains and the fall armyworms as having the potential to negatively affect growth.
Dzonzi, therefore, suggested that if government cuts travel and the Decent and Affordable Housing Subsidy Programme (Dahsp) expenditure, the resources can be channelled to fight against fall armyworms which have affected 133 083 farmers in the country.
For the fall armyworms outbreak to be contained, government needs about K8 billion.
Said Dzonzi: “The problem of fall armyworms is very serious and government should cut travel expenditure for the President, the Vice-President and all civil servants as well as members of Parliament, so that the resources are channelled towards the fight against fall armyworms. Even the Malata and Cement Subsidy should be suspended and the money be channelled to the agriculture sector as our economy is agro-based.”
The affected districts are Nsanje, Chikwawa, Mwanza, Neno, Phalombe, Chiradzulu, Blantyre, Thyolo, Mulanje, Zomba, Balaka and Machinga in the South; Lilongwe West, Dedza and Ntcheu in the Centre, Mzimba North, Rumphi, Nkhata Bay and Chitipa in the North.
On the Mid-Year Budget Review, Dzonzi said: “We do not expect a lot from this year’s budget review because the production sector is suffering due to, among other reasons, power outages. If the country cannot produce it is difficult for taxpayers to contribute effectively as a result the Malawi Revenue Authority will not be able to collect enough taxes.”
According to statistics, the Malawi Revenue Authority (MRA) missed its targets in the first-quarter, collecting K286 billion between July and October, against a projection of K305 billion.
Chancellor College-based economics professor Ben Kaluwa agreed with Dzonzi on Thursday, saying more resources need to be channelled to agriculture because there is “a crisis in the agriculture sector”.
He said both Malata subsidy and travel resources must be drastically reduced because the situation in the fields is not good enough, and some people may die of hunger.
“To me, it is better to review the whole budget system because when you are driving in the wrong direction, you stop and change course. The Malata subsidy is not a crisis. These resources can prop up the economy and save people from hunger. If you are hungry, a roofed house becomes secondary,” said Kaluwa.
Ministry of Finance, Economic Planning and Development spokesperson Davis Sado on Thursday said the mid-term budget review gives authorities an opportunity to factor in emerging issues in the budget.
“It will be difficult for me to say resources will be removed here to there now because this is an ongoing process,” said Sado.
