The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has asked the Treasury to reallocate funds to high-impact areas with a focus on strategic expenditures that directly address core priorities.
This, according to the chamber, would help towards economic recovery and growth.
It recommends investment in agricultural productivity, export promotion and expansion of mining activities by facilitating existing agreements and better managing artisanal and small-scale mining.
In a response to a questionnaire, MCCCI President Wisely Phiri said the initiatives are essential for building resilience.
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“While the budget theme holds promise, a recalibrated approach that incorporates both internal and external economic dynamics will be essential to fully achieve its objectives and support sustainable development,” Phiri said.
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In a separate interview, economist Francis Chanthunya recommended a revision of budget assumptions to reflect reality.
“The overall picture, with higher-than-expected inflation, would mean higher input costs for businesses and higher prices for consumers,” Chanthunya said.
Finance Minister Simplex Chithyola Banda is set to face Parliament next month for the 2024-25 mid-year budget review.
The budget, presented on February 23, is said to have already gone off-track, with most parameters it was premised on losing shape.
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There have been disparities between revenue and expenditure over the first months of the financial year, forcing the government to spend beyond means.
For example, in the first quarter of the financial year alone, the government budgetary operations recorded a deficit of K555.1 billion as expenditure far outweighed revenue
In the period under review, total revenues amounted to K743.3 billion against expenditures of K1.3 trillion during the quarter.
Blantyre-based economist Marvin Banda said this financial year has been riddled by projections that have grown grossly from the baseline assumptions.
