Parley committee demands clarity on debt – Capital Radio Malawi
14 April, 2024

Parley committee demands clarity on debt

Ganda: We need to do budget tracking

The parliamentary committee on budget and finance is demanding clarity on the current public debt.

The parliamentary committee issued the demand during a meeting with authorities at the ministry of finance in Lilongwe.

The public debt stands at K13 trillion while the proposed 2024/25 budget deficit stands at K1.4 trillion.

“We wanted more explanation from the ministry of finance itself regarding public debt because loans and government debt need parliament approval,” Ganda said.

The parliamentary committee prescribes budget tracking as a solution to assess whether government debt is in line with what they approved beforehand.

She said: “So, now we need to do budget tracking so that we know if the approved debt is in line with what loan has been taken.”

Between 2022/23, finance ministry established that Malawi’s total public debt stock rose by 38 percent from K6. 84 trillion, or 63 percent of gross domestic product (GDP), as at the end of March 2022 to K9. 4 trillion or 75 percent of GDP in March 2023

Meanwhile, economists have described Affordable Input Program (AIP) among others, as a drainer of public funds largely contributing to unnecessary debt stating that it only benefits few farmers.

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