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The Times Group > Blog > Business > Network highlights budget pressure
Business

Network highlights budget pressure

Taonga Sabola
Last updated: 2026/03/16 at 7:39 PM
Taonga Sabola
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AFFECTED—Ultra-poor households
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The Malawi Economic Justice Network (Mejn) has said strengthening social protection financing could help reduce poverty and inequality in the country.

The organisation made the observation in Lilongwe on Thursday evening during an engagement dinner with Members of Parliament, where it presented its analysis of the 2026-27 national budget.

The discussion focused on public debt, domestic resource mobilisation, social protection and the extractive sector, and sought to explore how public resources could be allocated efficiently to address inequality and strengthen social protection systems in Malawi.

According to the analysis, key macroeconomic challenges affecting social protection financing include persistent fiscal deficits, rising public debt and heavy reliance on domestic borrowing.

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It noted that the government spending is largely dominated by recurrent expenditures such as wages and subsidies, leaving development and social protection programmes vulnerable to budget cuts.

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The network recommended strengthening domestic revenue mobilisation, expanding the tax base without placing additional pressure on vulnerable populations, improving the performance and accountability of state-owned enterprises, and enhancing governance and transparency in the mining sector as a potential driver of Malawi’s economic viability.

The analysis also identified social protection as a critical strategy for building socio-economic resilience, particularly when programmes are effectively targeted at poor households.

Mejn Executive Director Bertha Phiri said the discussions will help lawmakers as they begin scrutinising the budget from this week.

Chairperson of Parliament’s Budget and Finance Committee Sosten Gwengwe said the committee appreciates such contributions from civil society as they help lawmakers develop an informed position when critiquing the budget.

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The engagement was part of Mejn’s Fighting Inequalities project, implemented with technical and financial support from the Norwegian Agency for Development Cooperation through the Norwegian Church Aid / DanChurchAid Malawi Joint Country Programme.

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Taonga Sabola March 16, 2026
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