Rédaction Africa Links 24 with Serah Makondesa Chilora
Published on 2024-03-30 06:01:41
The 2023-24 financial year is coming to an end, and as reported by Malawi News, the councils have faced ongoing struggles to secure funding from the Treasury. Throughout the year, there has been inconsistent and sporadic funding for Other Recurrent Transactions (ORT) and the General Resource Fund (GRF), which are crucial for the smooth operation and delivery of services within the local government system.
In an effort to follow up on the funding challenges faced by the councils, discussions were held with 14 District Commissioners (DCs) to gauge whether the situation had improved as the financial year draws to a close. Unfortunately, all DCs confirmed that they are ending the year in the same difficult financial position as they started, with little hope of receiving funding arrears in the new financial year.
Many DCs highlighted the significant challenges they have faced due to the lack of funding, forcing them to rely on revenue collection to sustain operations. For example, essential expenses like fuel for ambulances at district hospitals rely on ORT and GRF funds, which have been lacking. As a result, borrowing has become a common practice to fill the financial gaps, highlighting the strain that the councils are under.
The financial strain was acknowledged during a council meeting in Nkhata Bay, where DC Rodgers Newa admitted to the challenges faced by the council due to inadequate funding. This sentiment was echoed by Hadrod Mkandawire, the Executive Director of the Malawi Local Government Association (Malga), who expressed frustration at the lack of response from the Treasury despite their efforts to seek assistance.
Mkandawire emphasized that the persistent funding issues could hinder the attainment of the national budget intentions for 2024-25, impacting the delivery of essential services to the population. Without adequate funding, economic recovery and resilience objectives may not be achievable, as access to essential services at the local level is compromised.
While Minister of Local Government Richard Chimwendo Banda was unreachable for comment, Secretary to Treasury Betchani Tchereni acknowledged the liquidity challenges faced by the government but assured that efforts have been made to provide funding to the councils within the available resources. Tchereni acknowledged that delays in funding may have occurred, but maintained that the government has made efforts to support the operations of various ministries and councils.
Overall, the ongoing funding struggles within the local government system in Malawi have hampered the delivery of essential services to the population. The lack of adequate funding has forced councils to resort to borrowing and rely on limited revenue sources, highlighting the critical need for sustainable financial support to ensure the effective functioning of local government operations.
Read the original article on The Times
