By Vincent Gunde
President Dr. Lazarus Chakwera…..has been promising austerity measures only to punish the poor people
The United Transformation Movement (UTM) says it considers the priorities in the Mid-Year Budget as upside down where prominence is given towards non-priority consumption areas than promoting economic growth and development areas.
The UTM says President Dr. Lazarus Chakwera on 27th November, 2024 promised austerity measures to address economic challenges but the Budget lacks significant austerity measures saying State Residences expenditures have surged from K24 billion to K34 billion, and the Office of the President and Cabinet (OPC) Budget has increased from K34 billion to K39 billion.
The Party has observed that funding for critical growth sectors such as Mining, Manufacturing, Agro-processing, and Tourism remains stagnant or reduced saying these are glaring examples of the extravagance international travels and purchases of the President and his cronies.
In its response on the 2024/2025 Mid-Year Budget statement delivered by the Minister of Finance in the August House on 4th December, 2024 the UTM says the Budget has failed to address the status of the Extended Credit Facility (ECT) which was approved on 15th November, 2023.
The UTM says Malawians are desperately battling with raging flames of rising cost of fertilizers and its general shortage, shortage of foreign exchange and fuel, unsettled pension payments for retired public servants and many others.
The Party says despite claims that the Budget aims to promote growth and ensure macroeconomic stability, the UTM has observed that the reality is starkly different saying Malawi’s GDP growth remains at a dismal 1.8 percent.
It says this marks the worst ever recorded 4-year stretch of economic stagnation under an administration in the country’s history observing that 75 percent of Malawians live in poverty, 91 percent are unemployed, and many are destitute.
“The Budget statement provided no hope and solutions to the problems the country is facing,” reads the response in part.
The UTM says it has noted with concern that while global and regional inflation have eased to 5.8 percent and 18.1 percent respectively, Malawi’s inflation remains alarmingly high at 33.8 percent, fertilizers, food, fuel, forex and prices for all other basic necessities are simply unaffordable for many plunging households into severe hardship.
The Party says the alarming increase in public debt with K950 billion borrowed in the first half of the fiscal year and an additional K450 billion planned for the second half saying these borrowings largely allocated to recurrent expenditure, have pushed total public debt to an unsustainable K15 trillion.
The UTM says this irresponsible financial management is set to burden future administrations and generations undermining the nation’s economic stability describing this as selfish and gross financial mismanagement.
