By Duncan Mlanjira
Minister of Finance Felix Mlusu said the 2020/2021 budget which he presented in Parliament on Friday has been developed under the theme ‘Living the Promise’ and will focus among other ares achievement of sustainable and inclusive growth; macroeconomic stability and sound financial management.
“These objectives will be pursued through transparency and accountability, rule of law, enhanced resource mobilisation, efficient resource utilization and provision of relevant infrastructure,” Mlusu said.
“These are some of the promises that the Tonse Alliance made to the people of Malawi.”
Finance Minister Felix Mlusu
Highlights:
* Budget is pegged at K2.9 trillion
* Tax free bracket on salary increased from K45,000 to K100,000 (effective October 1, 2020)
* Education gets the largest share of K384.5bln
* Agriculture gets K354.8bln
* Constituency Development Fund from K30m to K40m
* Maize purchases pegged at K10bln
* MEDEF fund increased to K75bn
* 2003 Public Finance Management Act to be amended (punish duty bearers who fail to account for resources)
* To implement cheap fertilizer subsidy targeting 4.2m farmers
* 50kg bag at K4,495
* Over K400m allocated for people with albinisms
* K511 billion budgeted for development projects
* To construct indoor netball courts and Mzuzu Youth Centre
* To construct Kasungu-Mzimba M1 road, Jenda-Embangweni road, Njakwa -Livingstonia road and Thyolo-Bangula road among others
* Free water and electricity connection
* To reduce Passport fee and introduce free driver’s license renewal
Former finance minister, Mwanamveka taking
notes
The Minister said the Tonse Alliance Government inherited a huge public sector debt stock, estimated at K4.1 trillion, which has significantly reduced this country’s new debt carrying capacity.
“The Ministry of Finance will work closely with the Malawi Revenue Authority and all revenue collecting Ministries, Departments and Agencies to enhance revenue mobilisation efforts as one way of countering pressures on the budget.
“Government will emphasise on efficiency in revenue mobilisation through improved governance and reforms at MRA; financial discipline, compliance and transparency in handling public resources.
The august House
“Furthermore, Government will focus on minimizing non-essential spending by State Owned Enterprises to ensure that all public resources in form of surpluses and dividends are channeled to the Malawi Government Consolidated Account.”
Mlusu added that President Lazarus Chakwera’s Government has already reached out to the donor community for budget support and debt restructuring.
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