Budget to be aligned with revenue estimates
Malawi’s national budget, which is currently under review and awaits cabinet approval, will be aligned with the country’s revenue collected by the Malawi Revenue Authority (MRA).
The 2015/16 financial budget was pegged at K930 billion against a projected domestic revenue of K600 billion.
Minister of Finance Goodall Gondwe tasked MRA to collect K592.4 billion tax revenues in the financial year 2015/16.
MRA has however, missed its revenue target for the first quarter of the year as the body only managed to collect K193.58 billion between July and October, 2015.
MRA also missed its October target by 5 percent as the body only managed to collect K53.03 billion against a target of K55.97 billion.
Ministry of finance spokesperson Nations Msowoya said the new budget will align planned expenditures wi th projected revenues.
He said Treasury has been working with ministries and departments to review their work plans to come up with budgets that are in line with anticipated revenues.
“The reviewed budget is focusing on generic goods and services and focus [on the review] is on those expenditures that could be postponed to the next fiscal year,” he said.
Msowoya said the government is implementing a number of reforms aimed at making service delivery more efficient, with value for money for what it does.
He further said the government is strengthening public finance management systems to check the abuse of public funds.
“Internal and external controls are being strengthened,” said Msowoya.