The Minister of Finance and Economic Affairs, Simplex Chithyola Banda, on Friday afternoon presented the MK5.89 trillion 2024-2025 national budget that spells out a number of interventions aimed at healing the national economy.
Chithyola Banda said 30 percent of the total budget has been allocated towards increasing production and putting money into citizens’ pockets.
The 2024/2025 budget has been framed under the theme: “From economic recovery to resilience through accelerating production and enhancing the legal and regulatory environment to protect the economy.” This is the first budget statement Chithyola Banda has presented since his appointment in October 2023.
The minister stated that the 2024-2025 national budget reflects the situation of the national economy, as it was formulated with ‘constructive contributions’ from various sectors.
“Therefore, Madam Speaker, this budget reflects the views of the people of Malawi regarding their aspirations and how those aspirations will be achieved. I want to urge the Honourable Members of this August House to support this budget through balanced scrutiny and constructive contributions for the betterment of all Malawians,” he said.
Chithyola Banda disclosed that the proposed budget will aim to ‘Recover, Develop and Protect the economy’.
He said during the recovery, the budget will strive to improve and stabilise the economic situation by employing several reforms, including rationalizing public expenditure, diversifying revenue, advancing export strategies, and the recent currency realignment to improve foreign reserves.
Among major highlights in the budget, the government has projected that the economy will grow by 3.6 percent, wages and salaries projected at K1.08 trillion representing 5.7 percent of the gross domestic product (GDP).
The wages and salaries estimates have also incorporated resources for recruitment amounting to K6 billion and K70 billion reserved for general salary increment.
On pension and gratuities, the government has projected them at K193.17 billion while Government Contributory Pension Scheme has been allocated K46.75 billion.
The government has allocated K12 billion for maize purchases by the National Food Reserve Agency (NFRA) to replenish the Strategic Grain Reserves while the Agricultural Development and Marketing Corporation (ADMARC) ADMARC has been allocated K40 billion for operations and revamping agricultural production and value addition.
The Affordable Input Programme (AIP) has been allocated K161.28 billion to complement the other existing initiatives that strive for the attainment of national food self-sufficiency.
