Stakeholders advises Finance Minister not to prepare a consumption-focused

Finance Minister Chithyola Banda has finalised the three consultative

* Let’s avoid coming up with a consumption budget as some of the MDAs are given a lot of resources

* Yet they cannot contribute anything to the country’s revenue base

* Ministries should not only be consumers but also innovative to generate revenue

By George Bulombola, MANA

Stakeholders, who included business community, the academia, civil society and religious organisations from the Northern Region, have advised Ministry of Finance, Simplex Chithyola Banda to avoid drafting a consumption-focused 2024/2025 budget if the country’s economy is to propel.

The stakeholders gave the advice on Tuesday in Mzuzu during a pre-budget consultation meeting for the 2024/2025 fiscal year and making his contribution, Nyika Institute Foundation Executive Director, Moses Mkandawire advised the Minister against allocating high amount of resources to some ministries, departments and agencies (MDAs) which cannot generate revenue.

“Let’s avoid coming up with a consumption budget as some of the MDAs are given a lot of resources, yet they cannot contribute anything to the country’s revenue base. Ministries should not only be consumers but also innovative to generate revenue,” Mkandawire said.

Church & Society of the Church of Central Africa Presbyterian (CCAP) Synod of Livingstonia Executive Director, Rev McBowman Mulagha encouraged government to focus on the establishment of mega farms as one way of attaining food security.

He said most of the country’s policies and initiatives do not focus on production, describing social cash transfer program as a consumption safety net and advised that instead such resources should have channeled to mega farms for the country to become wealth and self-reliant.

“Some interventions, such agriculture input program are characterised by corrupt practices at all levels, thereby proving not to be a viable initiative in addressing food security initiatives. We, therefore, advocate for the establishment of mega farms.”

On energy and mining, Mulagha advised government to make all mining agreements public for transparency and accountability, saying: “Some investors in the mining sector end up exploiting the country because their agreements with government are secretive and become very difficult for other stakeholders to have knowledge on the initiatives proceeds and monitor the activities.”

Mzuzu University Vice-Chancellor, Prof. Wales Singini commended government for assisting needy students who are pursuing their studies in various universities.

“However, not all are supported since they are many. I implore government to initiate a sustainable and a more inclusive students’ loan programe for many to access tertiary education.

“Universities contribute to human resource and development which a very vital factor for the country to achieve MW2063,” Singini said.

Newly-appointed Secretary to the Treasury, Prof. Betchani Tchereni hailed the stakeholders, saying most of the contributions were relevant but expressed concern that the stakeholders did not focus on how the country can diversify its revenue base.

“We need resources, hence the need to also focus on diversification of our revenue base to support some of the proposed interventions,” he said while Minister of Finance, Simplex Chithyola Banda assured that some of the stakeholders inputs will be analysed and be considered in the budget formulation taking into consideration greater good for Malawians.