By Leonard Kavwenje
From the ongoing government socio-economic practices it is clear as crystal that President Lazarus Chakwera and his government are striving to strengthen fiscal sustainability to reduce domestic debt to create a strong foundation for growth.
Chakwera is a leader of incomprehensible comprehension on various developmental economics concepts.
Philosophically, he appreciates that everywhere in the world not only in Malawi high and increasing fiscal deficits pose a considerable risk to fiscal sustainability.
In view of this, this listening leader’s plans seek sustainable policy in the medium term to reduce debt service costs.
Chakwera and his government, too, aim to increase fiscal space for public investment. Not only that but also lowering interest rates to support private investment.
On fiscal consolidation, the Malawi Congress Party (MCP) led government is prioritising expenditure within a sustainable medium term fiscal framework with realistic revenue and grant resumptions.
In addition to that, he is ensuring that subsidies for agricultural production are sustainable while containing an increasing wage and pension bill.
In conclusion, the MCP government is increasing scrutiny of development expenditure for domestically financed projects through rigorous assessments through reforms alongside balancing increased revenue mobilisation and business environment promotion.
Disclaimer: The views expressed in the article are those of the author not necessarily of The Maravi Post or Editor