Rédaction Africa Links 24 with Malawi Voice
Published on 2024-03-12 19:25:25
The Budget Committee of Parliament is calling on the government to exercise financial prudence in the implementation of the 2024/25 national budget before it passes on April 1. Chairperson for Budget and Finance Committee, Gladys Ganda, made these remarks in response to the budget statement presented by the Finance Minister on February 23, 2024.
Ganda highlighted the importance of achieving macroeconomic targets, emphasizing the need for strategies to attain the stability required for growth. She noted that the country is currently far from the target inflation rate of less than 10 percent and a growth rate of at least 6 percent, which poses a threat to achieving the desired growth.
The Committee also emphasized the importance of efficiency in the agriculture sector, especially in light of the newly negotiated markets for groundnuts and soybeans. They called for adequate support to be given to smallholder farmers engaged in cash crop production.
Regarding the Agriculture, Tourism, and Mining (ATM) strategy, Ganda acknowledged that the proposed initiatives are not new but implementation has been a challenge. She stressed the need for actionable targets to ensure effective implementation and accountability. The Committee will continue to engage with the government to ensure transparency, accountability, and effective implementation of these initiatives.
The Committee also requested a comprehensive report on the success of diaspora investment engagements and worker remittances interventions. They raised concerns about significantly reduced dividend targets and called on the Minister to explain the reasons behind this reduction despite efforts to improve revenues.
Furthermore, the Committee recommended that the government carefully control the growth of the wage bill by conducting regular payroll and personnel audits, assessing functional reviews, and avoiding nonessential recruitments and the creation of excessive budgetary units with similar functions and mandates.
Ganda also addressed the issue of public debt, urging the Minister to update the house on the results of debt restructuring and debt swap negotiations with commercial and bilateral lenders. The Committee called for an actionable plan to address domestic debt, which is burdening the budget with debt interest payments.
Lastly, the Committee encouraged the government to expedite the integration of the Integrated Financial Management Information System (IFMIS) to Local Councils and Human Resource Management Information System (HRMIS). They also called for updates on whether all government contracts, commitments, and revenues are now being captured and managed through the system.
In conclusion, the Budget and Finance Committee is committed to ensuring financial prudence and accountability in the implementation of the national budget for 2024/25 and will continue to engage with the government to achieve these goals.
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