The main opposition Democratic Progressive Party (DPP) has described the K5.98 trillion 2024-2025 budget estimates as dead on arrival.
DPP Spokesperson on Finance Joseph Mwanamvekha made the sentiments in Parliament when responding to the budget pronouncing the assumption that the economy will grow by 3.6 percent in 2024 and 4.8 percent in 2025 is unrealistic and overly optimistic.
Mwanamvekha said: “Madam Speaker, it is therefore unrealistic and overly optimistic to believe that Malawi will be an exception especially considering that most companies in Malawi are scaling down production due to falling domestic demand – caused by dwindling disposable income.”
He added that living in Malawi is like living in hell amid countless economic hardships that millions of Malawians are currently facing.
“Living in Malawi is like living in hell. With the two major currency devaluations which puts the Kwacha at K1,700/US$ on the official market and K 2,400/US$ on the parallel market.
“Inflation at 35 percent; the policy rate at 26 percent coupled with foreign currency shortages and Government debt hitting as high as K 12.56 trillion. Life has become unbearable,” Mwanamvekha said.
In its response, the United Democratic Front (UDF) has urged government to relook at its financing strategies and enhance the non-tax revenue generating units that can reduce the reliance on borrowing to finance the National Budget.
“Regulating and activating the mining sector should be prioritized to ensure that the country realises the revenue generated from it. So does the tourism sector, it requires aggressive investments to realise its massive potential.
Madam Speaker, we are sad to note that our expenditure patterns are generally for consumption and less impactful in accelerating production and development,” said Misolo Mussa, UDF finance spokesperson.
The two major opposition parties have since cautioned that the budget contains a lot of contradictions; fiscal and monetary inconsistencies and it is a ticking bomb awaiting to explode.
