Mwanamvekha to unveil 2020/2021 budget

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha will present the the 2020/2021 national budget in Parliament this Friday, June 12.

Mwanamvekha has  hinted that the main focus of the country’s financial plan  is to mitigate the impact of the novel coronavirus (Covid-19) pandemic while also speeding up economic recovery and building up resilience against external shocks.

Treasury has said  that the country’s purse keeper  will present and lay before Parliamment  the budget statement  at 9.30am.

“However due to Covid-19 pandemic mitigation measurers the Honourable Minster has not made any invitations to the Budget Presentation and urges all stakeholders  and the general  public to listen to the budget statement presentation through the radios, television and online broadcasting,” said the statement.

Finance Minister: Mwanamveka

The budget statement will also be made available on Ministry of Finance website soon after presentation.

The government  has since lowered its economic growth forecast for 2020 to 1.9 percent, Covid-19 which has taken its toll on growth sector.

But the projection is  still 0.9 percentage points above the International Monetary Fund (IMF) real Gross Domestic Product (GDP) forecast for Malawi for 2020 of one percent.

President Peter Mutharika in his pre-recorded State-of-the-Nation (Sona) address at Parliament last Friday explained that his government still managed to achieve the 2019 targeted 5 percent of economic growth, an improvement from the 3.9 percent real GDP growth registered in 2018.

However, Budget and Finance Committee of Parliament chairperson Sosten Gwengwe  has painted a gloomy picture, saying with Covid-19 crisis, the country is heading into a recession come September or December.

A recession is a period of economic decline during which trade and industrial activity shrinks and is generally manifested by a fall in Gross Domestic Product (GDP) in two successive quarters.

Parliament will meet up to July 24 for the Budget Meeting