Laid bare

According to an aggregate of monthly expenditure figures provided by the Reserve Bank of Malawi, in the month of April, government spent K267.8 billion against revenue of K140.8 billion. In May, Treasury spent K219.9 billion on government operations against revenue of K128.7 billion. Finance Minister Sosten Gwengwe is expected to present the mid-year…

Central government operations consumed K1.3862 trillion in the first half of the year 2022-23 ended September 30, calculations by The Business Times have shown.

With the 2022-23 national budget pegged at K2.84 trillion, it means that the government managed to spend slightly below half of the total budget in the first six months of the year.

According to an aggregate of monthly expenditure figures provided by the Reserve Bank of Malawi, in the month of April, government spent K267.8 billion against revenue of K140.8 billion.

In May, Treasury spent K219.9 billion on government operations against revenue of K128.7 billion.

According to the RBM Monthly Economic Report for June, government operations consumed a total of K223.4 billion in June against revenue amounting to K149.4 billion.

In the month of July, budgetary operations recorded an expenditure of K211.1 against revenue amounting to K157.8 billion.

According to RBM, in August government spent K227.5 billion while revenues were seen at K182.6 billion.

In the month of September, Capital Hill spent K236.5 billion while revenue stood at K168.8 billion.

During the first half of 2022, total venue amounted to K928.1 billion resulting in a deficit of K458.1 billion.

Finance Minister Sosten Gwengwe is expected to present the mid-year budget review report in Parliament on November 25.

Speaking when he presented the budget in February, Gwengwe projected total revenues and grants for the 2022-23 fiscal year at K1.956 trillion, representing 17.2 percent of GDP.

Gwengwe also estimated an overall budget deficit of K884 billion, which is 7.7 percent of GDP.

“The deficit will be financed through foreign borrowing amounting to K230.07 billion and domestic borrowing amounting to K653.98 billion,” Gwengwe said.

Budget and Finance Committee of Parliament Chairperson, Gladys Ganda, on Sunday said lawmakers would scrutinise the financial plan during the current meeting of Parliament.

“We expect an update on general economic developments as at the mid-year and revised projections in GDP, inflation, etc.

“We also expect to be updated on revenue performance as at the mid-year and revised projections as well as performance of grants,” Ganda said.

According to Ganda, the committee will also be interested in an update on Extended Credit Facility negotiations with the IMF.

“The Budget Committee, which I chair, would want an update on the impact of austerity measures on the national budget.

“Update on AIP in terms of detailed cost and utilisation. Adjustments made to the AIP in view of the donations received so far. The minister may wish to explain to Malawians the economic impact of the programme this far and if there are plans to graduate some beneficiaries. We would also be interested in knowing how the government intends to reduce the debt currently at over.

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