LILONGWE-(MaraviPost)-Malawi Parliament on Wednesday, October 14, 2020 passed the MK2.2 trillion 2020/2021 national budget with minor amendments to some votes.
The passing of the budget means that the August House Parliament has allowed the Tonse Alliance government to spend on social services and development projects.
However, before the budget was passed, members of Parliament took government to task to justify some allocations and praying for increased funding for some Ministries, Departments and Agencies.
The recurrent expenses are projected at MK1.679 trillion comprising MK523.7 billion for Wages and Salaries; MK376.0 billion for Interest Payments; MK308.9 billion for Goods and Services; MK266.0 billion for Social Benefits; and MK97.4 billion for Subvented Organisations.
Development expenditure is projected at MK511.2 billion, consisting of MK100.9 billion for domestically financed projects and MK410.3 billion for foreign-financed projects.
The budget has a fiscal deficit of MK754.8 billion, which is expected to be financed by foreign borrowing amounting to MK224.8 billion and MK530.1 billion from domestic borrowing.
The citizens have much expectation how the first Tonse government fiscal plan will be implemented with such huge of debts.
Malawi’s debt has accumulated about MK4.1 trillion for the past five years.