Chairperson of the Parliamentary Budget and Finance Committee, Gladys Ganda has said the 3.2% economic projections done by the Minister of Finance Simplex Chithyola Banda in his Budget Statement is like ‘whitewashed tomb because inside the budget it is full of dead bones and everything found is unclean.’
Ganda was speaking in Parliament on Monday, March 17, 2025 responding to the Budget Statement issued by Minister of Finance Simplex Chithyola Banda on February 28, 2025 and the strategic actions required for fiscal sustainability.
In her remarks, Ganda has condemned government for poor economic policies which are putting the country under constant inflationary pressure that have been caused by persistent borrowing and overspending and in the process triggering the inflation to be at 32.3% as budget deficit is now forecasted to be at MK2.473 trillion while the national debt standing at Mk16.19 trillion which is a huge burden to the poor Malawians.
“Madam Speaker, the current state of our economy, though unfortunate, is not shocking.The Committee has repeatedly highlighted
persistent economic challenges, yet these issues
continue to undermine our fiscal stability. There is growing concern over whether the
proposed fiscal policy measures will sufficiently address the root causes of our financial distress, particularly the unsustainable levels of debt that continue to burden our nation.The failure to curb our borrowing appetite, even as government
expenditures rise, is a matter of serious concern.
“Madam Speaker, on our greatest weaknesses has been our failure to address urgent matters with the necessary sense of urgency. Allocating resources to well- structured projects with clear timelines,
particularly those that directly combat hunger
and reduce import dependency in the short term, would have been a more strategic approach while working towards long-term solutions. Unfortunately, as a nation, we have struggled with a lack of focus and frequently misplaced priorities. Madam Speaker, our resource envelope is already small, yet we continue to spread ourselves too thinly across too many initiatives without tangible results. It is imperative that we take a more disciplined and strategic approach to resource allocation, focusing on initiatives that yield meaningful outcomes for
our people. It is only through such decisive action that we can place our economy on a sustainable path and secure a better future for
our nation,” said Ganda who has vast experience in economics and finance having worked for banking industry for many decades.
According to her, the Committee is also concerned about the recent volatility in foreign financing, with some donors such as USAID having withdrawn funding.
The Committee has however welcomed government position on number of tax measures such as Income Tax , VAT on basic needs such as bread and confectioneries as such move will ease financial burdens on households. Removal of tax on irrigation equipment through Customs and Excise Tax is very important intervention to improve agricultural productivity amid climate- related challenges, elimination of excise tax on hybrid vehicle will promote eco- friendly transport among other measures.
The Budget and Finance Committee of Parliament which is mandated by the constitution to provide oversight role, has recommended several measures as one way of bringing back the economy to life. The Committee has asked government to enhance revenue mobilisation strengthening debt management and Reduce borrowing, improve improve budget transparency and and accuracy, strengthening agricultural resilience, addressing the high cost of inputs, enhancing budget flexibility and fiscal space among others.
