By Vincent Gunde
The United Transformation Movement (UTM) has criticized the priorities outlined in the 2024/2025 Mid-Year Budget, describing them as misaligned with Malawi’s pressing needs for economic growth and development. According to the UTM, the budget disproportionately allocates resources to non-priority consumption areas while neglecting critical sectors that could stimulate sustainable development.
The UTM referenced President Lazarus Chakwera’s November 27, 2024, commitment to austerity measures, which were meant to address the country’s economic challenges. However, the Party expressed disappointment that the budget reveals increased spending on State Residences, from MWK 24 billion to MWK 34 billion, and on the Office of the President and Cabinet (OPC), from MWK 34 billion to MWK 39 billion.
The Party criticized stagnant or reduced funding for crucial growth sectors such as mining, manufacturing, agro-processing, and tourism. They argue that this mismanagement reflects misplaced priorities, evidenced by the continuation of costly international travels and luxury purchases for the President and his allies.
In its official response to the Finance Minister’s Mid-Year Budget statement, delivered in Parliament on December 4, 2024, the UTM highlighted several glaring issues, including the absence of clarity on the Extended Credit Facility (ECF) approved in November 2023.
The UTM noted that ordinary Malawians continue to grapple with escalating costs of fertilizers, persistent foreign exchange and fuel shortages, and delayed pension payments for retired public servants. Despite claims that the budget focuses on growth and macroeconomic stability, the Party said Malawi’s Gross Domestic Product (GDP) growth remains stagnant at a mere 1.8%.
“This marks the worst-ever recorded four-year stretch of economic stagnation under any administration in the country’s history,” the UTM stated. It highlightesignificantly higher than the global and regional averages of 5.8% and 18.1%, respectively. This has rendered basic necessities, including food, fuel, and fertilizers, unaffordable for most households, pushing many into severe hardship.
Public debt, another contentious issue, has surged to an unsustainable MWK 15 trillion. According to the UTM, the government borrowed MWK 950 billion in the first half of the fiscal year and plans to borrow an additional MWK 450 billion in the second half. The Party criticized this debt, largely directed towards recurrent expenditure, as a sign of “selfish and gross financial mismanagement” that jeopardizes future generations’ economic stability.
Concluding its critique, the UTM described the budget as devoid of hope or solutions for the nation’s ongoing crises. The Party urged the government to realign its priorities, implement meaningful austerity measures, and invest in sectors that will drive economic recovery and growth.
As Malawians continue to face unprecedented economic challenges, the UTM’s stance highlights the need for a critical reassessment of national priorities to foster sustainable development and ease the hardships endured by the populace.
