By Wezzie Gausi:
The Malawi Local Government Association (Malga) has expressed concern over the limited fiscal space allocated to Local Government Authorities (LGAs), which, it says, has resulted in inadequate Central Government transfers.
In an analysis of the first nine months of the current financial year, Malga revealed inconsistencies in cash flows from the Central Government.
This, it argues, undermines the potential of LGAs to contribute meaningfully to the achievement of goals set in the Malawi 2063 vision, the country’s long-term development blueprint.
Malga Executive Director Hadrod Mkandawire told The Daily Times that there is a gap between policy and action.
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“This is emblematic of the challenges facing fiscal devolution. LGAs are hindered by a lack of fiscal autonomy despite their strategic role in national development.
“The government has encouraged LGAs to innovate and increase their internally generated revenues. However, nearly all lucrative revenue sources at the local level remain monopolised by the Central Government,” Mkandawire said.
He added that the Republican Constitution, the Local Government Act (Chapter 22:01) and the revised Decentralisation Policy of 2024 all emphasise the need for fiscal autonomy for LGAs.
Centre for Transparency and Accountability Executive Director Willy Kambwandira concurred with Malga.
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He was quick to say while Central Government funding may be inadequate, some councils had been accused of abusing the limited resources they receive.
“As we move into 2025, there is an urgent need for financial discipline and accountability within councils.
“The Treasury should also improve the consistency and timeliness of fund disbursement. You cannot expect government ministries, departments and agencies to function effectively without the necessary resources,” Kambwandira said.
