13/01/2025
Malawi Minister of Finance says climate change affected implementation of 2024-2025 budget
Malawi's Minister of Finance, Simplex Chithyola Banda has said the 2024-2025 budget implementation was hit by effects of climate change (El Nino) which resulted in various economic hardships the country has faced over the past year.
The Minister made the remarks during an opening ceremony for a pre-budget consultation meeting currently underway at Bingu International Convention Centre in Lilongwe.
He said the budget is a crucial tool for fostering economic stability and growth, particularly during times when the economy faces significant challenges.
"Given the current economic climate, it is essential that we collaboratively identify key areas for the budget to focus on in order to promote sustainable economic growth and resilience for the betterment of Malawians.
"The past year has been marked by notable progress and significant challenges. Domestically, we have worked tirelessly to stabilize inflation, strengthen our currency, and improve public service delivery," said Chithyola Banda.
The Minister said the country continues to face persistent economic hurdles. Globally, the world is navigating the adverse impacts of geopolitical tensions, fluctuating commodity prices, and negative effects of climate change.
Chithyola Banda said however, the government is still in discussion with the International Monetary Fund to consider supporting Malawi with the Extended Credit Facility (ECF).
He said currently, the government will continue to rely on domestic revenue resources to fund its budget operations other than just the donors.
The Economic Association of Malawi (ECAMA) President, Bertha Bangara Chikadza, said the government should reconsider the decision to rely on grants saying in the past year, it has not been of much help.
"Relying on donors will be like shooting ourselves in the foot. Grants have failed in the past year and we cannot continue to rely on them more," she said.
Reported by GAN