More donor budgetary support needed – MCP

There are growing fears that Malawians will continue suffering if the Joyce Banda government will not approach its cooperation partners for a bail-out strategy.

This follows reports that the devaluation and the floatation of the Kwacha will lead to over expenditures in the budget.

Speaking to the media, Malawi Congress Party chief whip Joseph Njobvuyalema said citizens are feeling the pinch of the economic reforms because there is no money to cushion its effects.

“The donor community will have to be asked to bail us out not only in cautioning the impact of devaluation and floatation on the masses, but also on the budget deficit, because our expenditures in ministries or government departments will be very high because the value of the kwacha has become low,” said Njobvuyalema.

“As a result our budget deficits will be so big that we could not do it on our own. And the donors promised a 40 percent to cushion the budget deficit but you find that the pledged will be very little compared to the deficit.”

The donors and other corporate partners resumed pouring in their aid soon after Joyce Banda ascended into the presidency after the death of former president Bingu wa Mutharika in April 2012.

However, most Malawians are wondering as to how the aid is being spent arguing they are not benefiting from it.

“We just hear that we have received millions of dollars from the donors , but as for me there is nothing I can point to have benefited from it,” said a Mr Phiri in the streets of Blantyre.

” I receive the same low salary as a civil servant, sometimes I don’t find medicine in a public hospital, minibus fares and other goods and services continue going up everyday. So I wonder where the money, which is touted to be benefiting the poor masses go to?”

Finance minister Ken Lipenga hinted earlier an increase in the farm input subsidy programme (FIPS) budget following the irregularities that marred its implementation this years.