Secretary to the Treasury, Dr. Betchani Tchereni, has disclosed that the 2024/2025 budget could have been reduced by up to K10 billion if certain adjustments had been made.
Tchereni was commenting on the reasons behind the rise in budget estimates, despite earlier assurances by President Dr. Lazarus Chakwera that this year’s financial plan would be guided by strict austerity measures.
He attributed the increase to numerous funding requests submitted to the Ministry of Finance by various sectors and stakeholders.
These include demands for essential public services, disaster response needs, and economic recovery interventions.
Minister of Finance Simplex Chithyola Banda, reiterated government’s commitment to maintaining fiscal discipline while emphasizing the need for shared sacrifices to address the country’s financial challenges.
“This is an austerity budget. It requires all of us, including privileged individuals and officials, to make sacrifices. We must focus on critical investments and tighten our belts for the good of Malawi,” he stressed.
In line with this commitment, the budget has introduced bold revenue enhancement measures, such as removing VAT waivers on motor vehicle imports for high-ranking officials, including the President, Vice President, Members of Parliament, and senior judiciary and government officials.
Government also plans to fully implement electronic excise tax stamps, establish a voluntary tax compliance window for motorcycle operators, and expand electronic payments to reduce leakages in revenue collection.
“These measures reflect our collective resolve to ensure economic recovery and resilience. We all have a role to play in rebuilding our economy for a better tomorrow,” Banda added.
The 2024/2025 budget reflects government’s balancing act between addressing urgent financial needs and maintaining a commitment to fiscal responsibility.
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