Rédaction Africa Links 24 with Taonga Sabola
Published on 2024-03-26 06:39:54
Parliament made significant progress on Monday by passing 15 out of 59 votes valued at K528.6 billion in the 2024-25 national budget. The swift passage of these votes within a two-hour period has raised hopes that the entire financial plan could be approved before the end of the week. However, three votes related to the Independent Complaints Commission, National Intelligence Service, and National Local Government Finance Committee were deferred for further review.
Finance Minister Simplex Chithyola Banda commended the thorough scrutiny of the budget by lawmakers and expressed satisfaction with the speed at which the budget votes were passed. The first vote to be passed was the K42.516 billion allocation for State Residences, with questions from lawmakers Shadrick Namalomba and Ben Malunga Phiri. Chithyola Banda expertly addressed these queries, and scrutiny on the other 15 votes came from MPs Namalomba, Phiri, Gladys Ganda, and Joshua Malango.
The Finance Minister explained that the three deferred votes were postponed due to technicalities to ensure that only votes reflecting the will of the people were passed. He defended the budget’s realism and its potential to drive Malawi’s development, citing business surveys and economic sector considerations in agriculture, manufacturing, and transport as the basis for budget assumptions.
Chithyola Banda highlighted the dynamic nature of budget assumptions, which take into account potential economic shocks like El Niño. He emphasized the budget’s alignment with prevention interventions, such as nutrient supplements and shock-responsive education systems. The Minister also acknowledged the increasing likelihood of extreme weather in Eastern and Southern Africa and emphasized the importance of building resilience in vulnerable communities.
President Chakwera addressed the nation on the impact of recent disasters on the agricultural sector, noting the widespread damage to crops and the urgent need for humanitarian response. Chithyola Banda announced additional funding for maize procurement to mitigate food security challenges caused by El Niño. He also addressed concerns about rising public debt, attributing its growth to various calamities and economic challenges faced by the country.
The Finance Minister assured the House of ongoing debt restructuring negotiations with bilateral and commercial creditors, with positive indications from key creditors such as China and India. Efforts are underway to finalize revised terms with other creditors like the Kuwait Fund and the Saudi Fund, signaling progress towards addressing the country’s debt burden.
In conclusion, the passage of budget votes and the government’s commitment to addressing economic challenges and debt restructuring demonstrate a proactive approach to sustaining economic stability and fostering development in Malawi. The collaboration between lawmakers, government officials, and international partners reflects a collective effort to navigate current challenges and build a resilient future for the country’s citizens.
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