GOVT TO TABLE ZERO-AID BUDGET; MALAWIANS SHOULD EXPECT TOUGH TIMES AHEAD-KACHAJE

One of the business and economic commentators in the country, Henry Kachaje has said Malawians should expect tough times ahead following the yet to be tabled Zero-Aid Budget by the current administrations.

Kachaje said this in an interview with the press on Monday when asked to comment on what Malawians should expect from the budget due for presentation today afternoon.

“When donors give aid to a country, it normally comes in form of foreign currency. Now with this situation, it means the country should anticipate forex shortages,” he said.

Kachaje explained that it is this foreign currency that reduces deficit of balance of payment (BOP) adding that the budget is therefore expected to be a tough one.

During a rally held at Njamba Freedom Park in Blantyre on Sunday, President Professor Peter Mutharika said Malawi will be using a zero-aid budget in the 2014/2015 fiscal year.

This will be the second time for Malawi to run a zero-deficit budget. The first one was in the 2011/2012 fiscal year initiated by late President Professor Bingu wa Mutharika.