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A budget of hope and optimism

Minister of Finance and Economic Affairs, Simplex Chithyola Banda, on Friday delivered his maiden 2024/25 budget pegged at K5.9 trillion, hoping to inspire the private sector, the country at large, but most importantly, raise optimism for the economy.

Themed from economic recovery to resilience through accelerating production and enhancing the legal and regulatory environment to protect the economy, Banda could hardly blink when unpacking the budget, as he spoke for close to two hours.

He refused to take a sip from his bottled water while fulfilling the task which was at hand, describing himself as an energetic servant of the people.

The message of hope started pouring when he unveiled key assumptions that are anchoring the budget. The minister said economic growth is expected to accelerate to 3.6 percent this year from 1.5 percent last year and 0.9 percent the preceding year.

He said another key assumption is that average inflation rate is expected to lower to 23.4 percent this year from an average of 28.8 percent last year.

For the first time in the history of the Malawi nation, development budget has been pegged at 30 percent of the total budget.

Development expenditure, pegged at K1.77 trillion, is earmarked to spur targeted sectors of the economy, namely Agriculture, Tourism and Mining (ATM strategy).

Treasury has also moved to shift the country’s economy from being a net importing and consuming nation to a manufacturing one, placing stringent taxes on importers of finished goods and massaging those who want to import raw materials for production.

The Agriculture Development and Marketing Corporation (Admarc) has been allocated a whopping K40 billion not for vending but rather to turn itself into a producer of value added goods.

Scores of people who witnessed the presentation of the budget in the capital city have showered praise on the blueprint, indicating that in recent times, the budget has never surpassed expectations like this one.

Economics Association of Malawi acting President, Bertha Chakadza, said it is pleasing to see a budget that has placed production, manufacturing and value addition at its heart.

She said as economists, they are excited seeing what the President said in the  State of the Nation Address (SONA) transforming into the budget, describing it as the right step towards food security, wealth and job creation.

“We indicated that we are expecting the budget to align to the SONA and we have seen that it has been like that and we are happy with the inclusion of non tax measures to improve tax collection,” Chakadza said.

Malawi has aspirations, to become a wealthy and self-reliant nation by 2063 but it is only through the national budget that such a dream, being championed by National Planning Commission (NPC), can be fulfilled.

NPC Director General Thomas Munthali expressed hope that what has been said in the budget will be implemented with seriousness.

“It will now be up to the ministry to make sure that it follows up on each and every ministry, department or agency to make sure that the money they will be given has been put to the right use,” Munthali said.

In the SONA, President Dr Lazarus Chakwera called for seriousness from not only government entities but also the private sector and citizens to make sure that the ATM Strategy bears desirable fruits.

“We are a nation under geopolitical, climatic, and fiscal pressures, and that calls for seriousness. if all of us collectively do that, we will make our economy grow and make our wounds heal faster than expected,” the president said.

 

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