By Linda Kwanjana
Minister of Finance Simplex Chithyola Banda has delivered a mid-year budget tailored to propel economic growth as among others tackles on revenue enhancement measures.
Presenting the mid year budget to the legislators, Chithyola Banda said announced that this is an austerity budget tailored to enhance revenue generation by allowing everyone to make sacrifices.
“I wish to highlight that Government is implementing the budget to promote economic growth and macroeconomic stability, which have been recently affected by both endogenous and exogenous shocks,” he said.
Among others government has removed Value Added Tax (VAT) waivers on the importation of vehicles for the President, vice President, former Presidents, members of Parliament and selected judiciary members as well as senior government officials.
He has since called upon legislators to support the bill when presented in chamber.
On the other hand, the Minister also highlighted that government has trimmed local economic growth by 1400 basis points from 3.2 percent projected at the start of 2024/25 fiscal year to 1.8 percent. He attributed the change to negative impacts of El Nino, which affected mostly the agriculture sector.
On the issue of carbon trade, the Minister has assured the public that Malawi is making progress with about $10.3 million US dollars realized through project implemented under Parks and Wildlife Department.
He also said climate shocks has forced government to revise the country’s economic growth which was at 4.3 percent when 2024/25 budget was presented down to 4.0 percent.
