2024/25 Budget "Not People's Centered" - Lawmaker

Noel Lipipa said the budget strays from the government's agreement with the International Monetary Fund under an extended credit facility program.

LILONGWE, Malawi — A Malawian lawmaker criticized the 2024/25 national budget on Tuesday, saying it should not be called a "People's Centered Budget" because of unrealistic revenue targets and a lack of funding for pressing issues, writes Esther Banda.

Noel Lipipa, a member of parliament representing Blantyre City South, told AfricaBrief after debating the budget that it contains major gaps that cast doubt on whether it can be fully implemented.

One key issue he raised is the budget's projection that the Malawi Revenue Authority will collect 3.3 trillion kwacha from the private sector.

"How are you going to keep milking a cow that can not give you milk? That's very very unrealistic," Lipipa said, noting that businesses are struggling with high interest rates and foreign currency shortages.

He also said the budget strays from the government's agreement with the International Monetary Fund under an extended credit facility program.

"On the revenue collection is already K729 billion kwacha, and on the revenue aside is about 479 billion kwacha, leaving a net of K247 billion kwacha. Where are we going to get this kind of money? We are already struggling economically as a country," Lipipa said.

The lawmaker argued there should be a separate allocation of at least K180 to K200 billion kwacha to clear pension arrears for civil servants, which he called "a very big problem that leads to debt stress" as retirees wait over two years to receive their payouts.

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