According to the National Planning Commission (NPC), social restrictions aimed at mitigating measures against Covid-19 pandemic, will cost Malawi ose K5 trillion ($6.7 billion) over the next 30 years.
A rapid cost-benefit analysis published by NPC has therefore urged that further government to desist from implementing further social restrictions will cost K165 billion ($223 million) every year. “There is a risk of significant loss of life associated with the disruption to health services. To ensure that long-term health and economic welfare is not heavily compromised, crucial areas should not see their funding cut when considering diverting resources towards fighting the Covid-19,” reads the report in part.
On the other hand, the Ministry of Finance spokesperson, Williams Banda, said key contributors into the 2020/21 National Budget are suggesting that the next financial plan should focus on recovery from possible effects of Covid-19 pandemic. Banda revealed that it has been suggested to widen the tax base so that the next budget should focus on economic recovery after Covid-19. The call follows after Malawi is unexpectedly spending her planned budget on cushioning effects of the pandemic; businesses are at a standstill, the tourism sector has partially closed down while the agricultural sector cannot import/export due to border closures.