* As Minister of Finance Simplex Chithyola Banda dates stakeholders for the Pre-budget consultation meeting
* Stakeholders’ views, inputs and suggestions are critical to support Government in its aspiration to build and grow the economy
By Duncan Mlanjira
The 2024-25 national budget will be formulated with optimism and will focus on recovery and cushioning the economy from the effects of recent policy changes Government has implemented.
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This has been assured by Minister of Finance & Economic Affairs on Monday at Sunbird Mount Soche in his keynote address at the Pre-budget consultation meeting with essential stakeholders in the business community, NGOs faith-based organizations and the academia where they presented their views and proposals on the 2024/25 National Budget.
He took cognizance their the stakeholders’ views, inputs and suggestions into the 2024/25 budget are critical to support Government in its aspiration to build and grow the economy for the benefit of the people.
He acknowledged that the Ministry of Finance has always prioritized the need to consult stakeholders in order to solicit views, contributions and inputs into the National Budget.
“The budget remains an important tool in fostering economic prosperity and eradicating poverty especially in times like these when the economy is experiencing various challenges.
“It is therefore important that we brainstormed together areas that the budget should focus on in order to promote economic growth and resilience.”
This is the first of the series of national consultative meetings planned ahead of the 2024-2025 fiscal year with the next scheduled for Lilongwe on Wednesday and on Friday.
Malawi Parliament
“According to the Public Finance Management Act (2022), my Ministry is mandated to prepare and oversee the implementation of the National Budget.
“However, the same PFMA requires me, as Minister of Finance, under section 27, to conduct public consultations to ensure public participation in the development of budget policy statement.
“This meeting therefore was very critical and of paramount importance as it accorded us with the opportunity to get your views in relation to the framing of the 2024/25 National Budget from a cross-section of stakeholders.”
In terms of the preliminary budget processes, the Minister said Government has set out the macroeconomic framework that looks at the macroeconomic targets such as fiscal and monetary policy measures and the debt sustainability targets to be achieved by the end of the fiscal year.
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“This follows the agreement with the International Monetary Fund (IMF) on an extended credit facility (ECF) of up to US$174 million, to help restore macroeconomic stability.
“Therefore, the Government has committed, under the ECF arrangement, to implement structural reforms and prudent macroeconomic — fiscal, monetary, exchange rate — policies and debt restructuring.”
He pledged that, while not all the suggestions could be accommodated but will remain critical in guiding the Budget formulation, the Ministry “will compile all the views and suggestions from this meeting for review and consideration in the process of consolidating it”.
The 2024-25 budget provides us with an opportunity to make great strides in our nation’s future,” he said. “As you are aware, our economy has been grappling with a number of challenges which were bringing in a lot of imbalances threatening the implementation of our long term development agenda.
“Implementation of the MW2063 and its First 10-Year Implementation Plan (MIP-1) required us to make tough choices today to ensure that the imbalances existing in our economy are addressed.”
Presentation were made by Malawi Confederation of Chambers of Commerce and Industry (MCCCI); Malawi University of Business & Applied Science (MUBAS); Institute of Chartered Accountants in Malawi (ICAM) and Bankers Association of Malawi (BAM).
Also presented were Malawi Revenue Authority (MRA) Commissioner General, John Biziwicki; Director General of National Planning Planing, Thomas Munthali; MCCCI president, Lekani Katandula, BAM president Zandire Shaba, among other high profile delegates.
In its presentation, MCCI said the private sector commends government for some initiatives in 2023, that include providing investors in large-scale farming for commercial purposes through mega-farms to benefit a tax holiday of up to 10 years and duty-free importation of various items, including machinery and building materials.
It also noted of the removal of import duties on gas appliances such as cookers and hotplates and introduction of duty-free importation of consumables such as cutlery and bed linen imported under CPC 442 for the tourism industry.
MCCCI also applauded the government for the Special Economic Zones (SEZs) Bill, which was passed into law by Parliament, saying it will help in the establishment of a dynamic and vibrant private sector.
The government also facilitated wheat flour exemption from value added tax (VAT) to ensure local manufacturers are competitive.
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