By Chrissy Nkumba
LILONGWE-(MaraviPost)-One of the country’s social commentators Ceaser Kondowe has expressed Satisfaction towards the 2022/2023 National Budget as presented by the Minister of Finance, Sosten Gwengwe, in parliament on Friday February 18, 2022 saying the budget brings hope to Malawians.
Kondowe says the outlook of the budget shows government has drawn a very good budget for the coming fiscal year.
He has however, expressed dismay towards the increase of Constituency Development Fund (CDF) from MK40 million to MK100 million for each constituency saying increase is unjustifiable.
Kondowe observes that if not maned properly funds will be prone to abuse by most parliamentarians.
“Past records prove that in the previous fiscal years, in most districts, CDF has not been well accounted for by a good number of parliamentarians.
“There are areas that need attention and yet the money is allocated to Members of the Parliament Instead of allocating it to specific areas of development,” says Kondowe.
He added, “CDF has been a fertile ground of abuse, corruption and maladministration by parliamentarians; now with this huge increase, even those who were not involved in the abuse of the funds previously will be tempted to do so”.
Kondowe has applauded government for listening to the crying voices of most Malawians to scrap off some punitive taxes like Value Added Tax (VAT) on cooking oil.
“Much as we applaud government for scrapping off VAT on cooking oil, sanitary pads, water and other items, it is not enough as there are commodities and other areas that government needs to consider scrapping off VAT and levies.
“One of such critical area is the reduction or removal of some levies on fuel. The many levies on fuel make the commodity exorbitant in the country thereby impacting on inflation of goods and services, said Kondowe.
INSIDE THE NATIONAL BUDGET
- Constituency Development Fund (CDF) raised from K40 million to K100 million.
- No more Importation of food rations and uniforms for security institutions. These will be procured locally.
- Solar power equipment and appliances to be duty free.
- Fertlizer procurement will not involve middlemen. Government to procure direct from manufacturers.
- Withholding Tax on tobacco sales down to 1% from 3%.
- All parastatals to submit financial audit reports annually.
- No VAT on cooking oil.
- No VAT on domestic tap water.
- Tax on gambling/betting reduced from 20% to 5% only.
- Duty Tax removed on Sanitary Pads and Fridges.
Expected Reforms from 2022
- Government Senior officials benefits and allowances to be revised downwards.
- Motorcade for President and Vice President to be revised downwards.
- Recruiting highly qualified Accountants to deal with IFMIS problem.
The next fiscal year has three priorities: wealth creation, job creation and food security.
