LILONGWE -(MaraviPost)-Minister of Finance Simplex Chithyola Banda on Friday, February 23, presented the 2024-2025 fiscal budget pegged at MK5.98 trillion representing 31.9% of GDP.
According to the minister of the total expenditure, recurrent expenses are estimated at MK4.21 trillion, representing 22.5 percent of GDP and 70.4 percent of total expenditure.
Chinthyola disclosed that Development Expenditure for the 2024/2025 Financial Year is estimated at MK1.77 trillion, of which MK1.39 trillion is for foreign-financed projects (Part 1) and MK383.6 billion is for domestic financed projects (Part II).
He added that the proportion of development expenditure to the total budget now stands at 30 percent from 24 percent in the 2023/24 Financial Year
Presenting the fiscal plan in Parliament, Chithyola disclosed further that the 2024/2025 Financial Year’s overall
balance is estimated at a deficit of MK1.43 trillion, which is 7.6 percent of GDP.
“This deficit will be financed through domestic borrowing amounting to MK1.28 trillion, representing 6.0 percent of GDP, and MK150 billion in foreign borrowing,” Chinthyola said.