An economist from Malawi University of Business and Applied Sciences, Betchani Tcheleni, has said Malawi needs to create better domestic resource mobilisation mechanisms if it is to meet the ever rising expenditure needs.
Tchereni said this in Lilongwe on Tuesday when he delivered a keynote speech at the national conference on debt and development.
The indaba was organised by the Malawi Economic Justice Network (Mejn) in collaboration with the African Forum and Network on Debt and Development (Afrodad).
“The outlook suggests that fiscal underperformance could continue,” Tchereni warned.
Secretary to the Treasury Macdonald Mafuta Mwale said the government has come up with initiatives to manage public debt.
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He cited debt restructuring, implementation of commitment controls and enforcement of the Public Finance Management Act 2022 to ensure that all government controlling officers do not commit resources beyond the appropriated amounts.
“Government is extending the tax base to engage domestic revenue collection, apart from reviewing tax incentive schemes and waiver and system automation and digitisation. The government is also maximising grants and other non-debt creating flows from bilateral and multilateral and other philanthropic organisations,” Mwale said.
He added that the government is also diversifying the economy to stop over reliance on smallholder agriculture and move to other investments like mega farms.
