The government of Malawi has abolished the payments of allowances to new students in public universities.
This was disclosed by Minister of Finance and Economic Development Goodall Gondwe on Friday afternoon when he was present the 2015/16 national budget in the August House in the capital Lilongwe.
The budget has jumped from about MK800 billion to MK901 billion.
Gondwe said government will introduce Students Loan and Grant Fund instead of the allowances which students will repay after finishing their studies.
“The 2015/16 budget includes a net lending figure of K3 billion to capitalize the Higher Education Students Loan and Grant Fund. In view of this, the payment of allowances to new students in public universities will be abolished,” said Gondwe.
Gondwe also disclosed that the 2015/16 national budget has attracted several tax measures to support the budget.
Meanwhile Parliament has been adjourned for two weeks for the Members to scrutinize the budget Statements.