Commenting on the implementation of the 2018/19 budget, the Ministry of Finance, Economic Planning and Development has described it as ‘a bit of a peculiar’, as revealed by the ministry’s spokesperson Davis Sado.

Sado attributed the above to the financial year that coincided with one off payments which were planned, but implementation required extra resources to meet emerging demands. We had to finance the Tripartite Elections and in the course of implementation of the electoral calendar activities, some circles beyond control necessitated an increase in resources. We also had to respond to the effects of the Cyclone Idai which severely hit some parts of the country. Response for immediate needs and partial immediate reconstruction necessitated release of more resources to save the situation.

On the other hand, the Budget and Finance Committee of Parliament has advised Treasury to consider implementing a zero-deficit budget to cushion the country from rising public debt stock. The call comes after the International Monetary Fund (IMF) warned Malawi against overborrowing, while the current fiscal deficit is 32% higher than last year’s fiscal deficit of MK183.621 billion. In the 2018/19 financial year, the Malawi government will spend a projected K183 billion (3.4% of GDP) as interest payments for the debts.