Budget debate starts in Parliament

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Category: Local News

Published on Monday, 11 June 2012 08:48

Written by Queen Nhlema

Malawi Parliament will on Monday start scrutinizing the recently unveiled 2012/2013 national budget as it resumes sitting.

Finance minister Ken Lipenga presented the proposed financial plan in parliament on Friday last week.

The plan is to cover the second half of this year up to June next year.

Dubbed by the finance minister as a recovery budget, the K406 billion plan has already been met by mixed feeling by the public.

Donors and economists have described the 2012/2013 as a cash budget, which will instill strict fiscal discipline and is in line with government's policy of economic recovery.

However, the civil society has condemned it arguing it has been designed to please foreign donors at the expense of poor Malawians.

During a public debate organised by the Malawi Economic Justice Network- MEJN some contributors argued that the proposed budget was not pro poor, as it is market oriented to favour industries leaving out other important social sectors.

Business and Economic Editor at Nation Publications Limited Ephraim Munthali said the budget has been driven by demands of the International Monetary Fund- IMF and other donors after Malawi displayed desperation for donor support.

According to Munthali, Malawi’s negotiators to a new IMF program were put on a vulnerable position when President Joyce Banda publicly said her government will comply with all IMF conditions.

Munthali who previously worked at the Ministry of finance as budget analyst said such a weakness has been exposed by the proposed budget, which he said has very little for the vulnerable Malawian.

On fiscal discipline Munthali wondered why the Presidential jet and 60 Mercedes Benz that President Banda promised to dispose off has not been included in the budget as promised.

meanwhile, the budget debate is expected to last up to fourteen days.