EU supports Lilongwe’s proposed 2024/25 budget

The European Union (EU) is speaking in support of Malawi’s step towards prioritisation of exports as indicated in the proposed 2024/25 national budget.

During Friday’s presentation of the financial blueprint in parliament, finance minister Simplex Chithyola Banda revealed that 30 percent of the K5.98 trillion budget would be channeled towards production projects.

“Madam Speaker, in closing, I would like to assure my fellow Malawians that our economy is getting back on track recovering 66 from the economic and climate related shocks that the country experienced. However, the country’s fiscal position remains challenged by the expenditure pressures that far outpace our revenues. Nonetheless, the 2024/2025 budget aims at accelerating economic recovery by boosting production” reads part of the proposed budget.

Apart from enhancing production, the government is also expected to boost construction and rehabilitation of roads, revamp the energy and mining sector and improve works within the tourism sector.

Despite a K1.43 trillion deficit the EU ambassador to Malawi Rune Skinnebach believes this will help Lilongwe address forex challenges and a persisting debt crisis.

Skinnebach is however pessimistic on the proper implementation of the financial blueprint with the 2025 general elections fast approaching;

“Malawi needs to produce more and export more. We know that something must be done on the fiscal, forex and debt crisis which Malawi is facing at the moment. On paper, this budget attempts to do something about these challenges.

“We know that this budget will be implemented as elections are approaching. So, there will be huge pressure on the government to ensure that fiscal discipline is respected. I think it has taken more courage to formulate this budget and it will even take more strengths to implement it,” observed the EU head of delegation.