By Dorica Mtenje
LILONGWE Maravipost: 2025-2026 National budget has been revised upwards from MK5.9 trillion to MK8.5 trillion representing 1.01 percent.
The total expenditure for the 2025/2026 financial year is programmed at K8.05 trillion, representing 31.1 percent of GDP. Of the
total expenditure, recurrent expenses are estimated at K6.04 trillion, representing 23.3 percent of GDP and 75.0 percent of total
expenditure.
The overall balance
deficit will be financed through domestic borrowing amounting to K2.33trillion,representing 9.0 percent of GDP and K145.78 billion
estimated at a deficit of K2.47 trillion, which is 9.5 percent of GDP foreign borrowing.
Presenting 2025-2026 Budget on Friday February 28 in the August House, Minister of Finance,Simplex Chithyola said government has allocated MK10 bilion for the new recruits.
Chithyola said pension grants and graduity has been allocated MK170 billion.
He added that the internship program has been revised from MK80,000 to MK150,000.
According to him, based on the thriving parallel forex market and externalization of forex by some exporters, there will be a stricter procedure for tracking export proceeds.
He further said government has also removed Value added Tax (VAT)on Bread and Bans and secondhand clothes with immediate effect the commodities should go down.
He state that despite the economic difficulties December 2024 and January 2025 debt stood at external debt reached K7.39 trillion, while domestic debt amounted K16.19 trillion, representing 86.4 percent of GDP, of which total to K8.79 trillion.
He therefore said among other things K5.1 billion has been earmarked for Mining Regulatory Authority; K4 bilion for the establishment of the Mining Company; K4.1 billion for Mining and Geological Services; and K1billionfor the Mineral Laboratory.