Malawi's 2025-26 National Budget has been tabled in Parliament

Malawi's 2025-26 National Budget has been tabled in Parliament, with a total expenditure of K8 trillion. The proposed fiscal plan aims to stabilize the economy, which has been struggling with slow growth, high inflation, and a growing debt portfolio.


The budget projects economic growth to increase by 3.4% from the previous year's 1.8%, with domestic revenue targeting K4.44 trillion. However, the budget also reveals a significant deficit of K2.47 trillion, which will be financed through borrowing from domestic and foreign markets.


The interest on debt will take up K2.17 trillion of the recurrent expenditures, an equivalent of 49.2% of domestic revenues. This is an increase from K1.46 trillion in the fiscal year ending on March 31, 2025.


Total public debt stood at K16.19 trillion, an equivalent of 86.4% of GDP, comprising K7.39 trillion in external debt and K8.79 trillion in domestic debt as of September 2024.


The government plans to borrow K2.33 trillion from the domestic market and K145.78 billion from foreign lenders to cover the deficit.


Experts have expressed concern over the country's high debt servicing cost and the reliance on external financing. They advocate for increased domestic revenue mobilization and improved public finance management.


The budget has also been criticized for lacking new strategies to stimulate economic growth, with some experts describing it as "more of the same".

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