‘Development budget’ as minister unveils 5.9tn fiscal plan

Finance minister Simplex Chithyola Banda presented a K5.98 trillion proposed 2024-2025 budget which is targeting production by channeling 30 percent of the funds to development expenditure.

The budget has also been set to offer reasonable tax to low earners while increasing taxes on people and businesses that make a lot of money.

This, is widely recommended by analysts as it reduces inequalities especially in poor economies like Malawi.

By channeling 30 percent to production projects, it means K1.77 trillion has gone to devilment budget.

Notably, the budget has direct links with the President Lazarus Chakwera’s State of the National Address (SONA) by focusing on agriculture, tourism and mining as production priority areas capable of turning around Malawi’s economy.

Among others, mega farms, mining projects under Malawi Development Corporation and initiatives aimed at boosting tourism have been allocated funds.

National Planing Commission director general Thomas Munthali views the budget as promising as it relates to Malawi’s long-term development blue print, Malawi 2063.

Among key highlights, spending projected at K5.98 trillion with revenues at K4.55 trillion, the estimated budget deficit is pegged at K1.43 trillion.