By Isaac Salima:
The Ministry of Local Government, Unity and Culture has asked district and city councils to diversify their revenue base for them to leverage on development opportunities.
Secretary for Local Government, Unity and Culture Richard Hara said this after observing that councils continued to face funding deficits, hence there was a need for them to start thinking outside the box.
Hara made the remarks in Blantyre on Friday when district council officials presented budgets for the 2024-26 financial year to the National Local Government Finance Committee (NLGFC).
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“For instance, our city councils do not get much from financial windows such that they generate their own funds. That is why we are insisting that councils should identify new and additional financing so that they can grow on their own. This is because the level of their dependence on the Central Government is a bit higher,” he said.
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Hara said councils could clear the path to financial independence by creating requisite laws.
On his part, NLGFC Executive Director Kondwani Santhe said apart from seeking alternative sources of funds, councils had to ensure that their activities were in tandem with national development plans.
“We are here to look at how the councils have adopted Malawi 2063 vision and MIP [Malawi Implementation Plan]-1 goals. This will ensure that their budgets and plans for the next financial year are speaking to various policies, including reporting templates,” Santhe said.
He said it becomes easy for other financiers to come in and support councils’ development plans if they see that the plans are aligned with national development goals.
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Meanwhile, Lilongwe District Commissioner Lawford Palani has said they would take heed of the message.
