World bank see no future in Malawi’s Fiscal discipline. We have government which operates as scavengers ad squander the little resources it has through useless expenditures. Malawi has ove 90% of its budget deficit being financed by domestic borrowing which is the highest among all African countries. Domestic borrowing is always considered short-term (KATAPIRA) as it needs to be paid back immediately. We have over 42% of total revenue being used to refinance loans and with excessive extravagant spending, huge wage bill, Malawi is left with nothing for developments.
With the current level of revenue generation, Malawi cannot sustain its income levels and balance them with expenditures. The country is borrowing too much. It’s life depends on loans. Lack of fiscal discipline by government officials, excessive travelingby President and his vice president, ministers, spending more than they can generate has escalated this problem.
Now, we have no fuel due to lack of Forex, hospitals have no medicine resulting in more deaths which could have beenprevented, schools have no learning materials, farmers have no Fertilizer, no food and the country cannot breathe. With all these problems, Malawians are deprived of their constitutional right to developments.
In one of the interviews, an economist and former Reserve Bank Governor Dr Dalitso Kabambe stressed the need for President Lazarus Chakwera to start respecting Malawians by ensuring that his government live within its means. Stop spending what you don’t have. Spend only what you are able to generate as a country, Dr Kabambe said. As it stands, Malawi will remain crippled with loans and interests that will choke the economy unless government manage its expectations.
With food inflation now higher as 40%, average inflation at 34%, Malawians remains the poorest in the world. According to world Bank, Malawians are t h e saddest people in the world full with depression, stress and emotional trauma
A Country without a VisionaryLeader is like a house without a door, you have no idea what’s inside (when outside) and what’s outside (when inside)
