BUDGET STATEMENT FACES HOT SPITS

Mlusu - Budget has been prepared under the theme 'Living the promise'

The newly presented 2020/2021 national budget tabled in Parliament last Friday has come into a convolution of crushing views as several bodies respond to the budget statement.

The budget which is to come into effect from 1 November 2020 has been proposed at K2.2 trillion.

Speaking when presenting the budget, the minister of finance Felix Mlusu said the budget has been developed under the theme 'Living the  promise' and the focus is achieving sustainable and inclusive growth, macroeconomic stability and sound financial management.

Kapito - 'Budget not good for consumers'

He  said, : "The objectives will be pursued through transparency and accountability, rule of law, enhanced resource mobilisation, efficient resource utilisation and provision of infrastructure".

However on Saturday, the Consumers Association of Malawi (CAMA) issued out a statement which faulted the government that they ignored the promises that could generate resources to support livelihoods.

In the statement, Cama executive director, John Kapito said the budget does not respond to any economic recovery and is a complete departure from the many promises that were made during the campaign period.

" Most Malawians expected that the new government would do things differently from the previous government, but unfortunately the current budget statement is unable to articulate key issues that the government needs to pursue to resuscitate the ailing economy and people's livelihoods ". Kapito hinted.

Some of the ignored promises which Kapito stated include :  the reduced prices of passport and driving licences, free connection of water and electricity, the creation of one million jobs and the removal of taxes on some basic goods and services.

" Government has Instead introduced measures that will hurt many consumers such as the introduction of new taxes on some products such as cooking oil and taxes on winning bets which has become a new income generator to the many unemployed Malawians". He added.

On the other hand, the Malawi Confederation of Chambers of Commerce (MCCCI) also responded to the budget saying it has failed to consider private sector tax incentives.

MCCCI director of business environment and policy advocacy Madalitso Kazembe said they hoped for efficiency driven fiscal policies and reduced tax burden from the government.

"We also expected the minister to articulate measures they will undertake to pay outstanding arrears to private sector going forward as this has been a big challenge for years". Kazembe said.

However, Kazembe said overall, the budget will address fiscal deficit measures and emphasises on reducing overall debt by coming up with a debt reducing fund.

She added, : " The budget has however emphasized the need to integrate the informal sector into the system, which if it were to succeed could be one way of widening the tax base".

Commenting on the same budget, former minister of finance, Honourable Joseph Mwanamveka said the government has lied to the country as a lot of promises that hooked the hope of Malawians have been skipped.

Mwanamveka also added that a lot of policies that have been included in the budget are the same with those of the last government.

Out of all the sectors, the education sector  is the leading in fund allocation amounting to K384 billion, the Agricultural sector has been allocated K354.8 billion, health sector K204.7 billion and transport sector K150.6 billion.

Mlusu said the Affordable Input Program has been allocated K160.2 billion and is expected to benefit 4.2 million farming families.

Constituency development fund which members of parliament receive for development of their constituencies has been increased from 30 to 40 million Kwacha.