By Suleman Chitera

The Government of Malawi has announced strict new expenditure control measures, including a ban on the purchase of new motor vehicles and other high-value assets across all public institutions. The measures are set to take effect from March 31, 2026, marking the close of the 2025/2026 financial year.

According to a circular issued by the Office of the President and Cabinet (OPC) and signed by Chief Secretary to the Government Justin Saidi, the moratorium applies to the procurement of government vehicles and all major asset purchases until further notice.

Key Austerity Measures Announced

The circular outlines several additional cost-cutting directives aimed at reducing public spending, including:

30% Reduction in fuel allocations for public officers

Strict limitations on foreign travel spending, including size of delegations and duration of trips

Review and possible cancellation of dormant mining licences to enhance resource accountability

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Staffing caps at foreign embassies to regulate wage and operational expenditure

Economic Hardship Forces Fiscal Tightening

These measures come at a time when Malawi continues to face severe economic challenges, including rising inflation, reduced foreign exchange reserves, and growing pressure on the national budget.

Government says the austerity steps are meant to restore financial discipline, prevent budget overruns, and ensure available resources are channeled towards critical development and social service sectors.

Ensuring Accountability and Efficiency

The OPC has emphasized that controlling recurrent expenditure is essential for improving public sector efficiency and rebuilding economic stability. Ministries, departments, and agencies have been instructed to strictly comply with the new guidelines.

Economists have long warned that Malawi’s public expenditure pattern has been unsustainable, with high government consumption draining funds needed for investment and economic growth.

With these new measures, authorities are signaling a renewed commitment to fiscal responsibility and public accountability.