TREASURY: GOVERNMENT OVERSPENDING

Secretary to the Treasury Newby Kumwembe has accused Parliament of failing to lead by example by overspending beyond its budgetary allocations.

Speaking in an interview Kumwembe said although one of the places where fiscal discipline should start from is the National Assembly but the situation as of now is contrary.

He said whatever the National Assembly does should be above reproach and, therefore, government expects that Parliament should not be in the fore-front of breaking the very laws it makes.
The National Assembly should be the first institution to safeguard the national budget by respecting its limit by adhering to fiscal discipline, said Kumwembe.

“The National Assembly, especially the Budget and Finance Committee, has an oversight role over issues of budget,” he said.

The Treasury chief said in terms of processes and procedures, like approval of the national budget and other related issues, Parliament has been able to play an oversight role. But he said the august House always demands more than its allocation, thereby spending beyond the margins.

“Therefore, what I was urging is that this is a House of laws and it needs to be seen to be observing those laws,” he said.Both acting Clerk of Parliament

Kumwembe further disclosed that Malawi’s debt stock is now very high.

“In June, 2013, it was peened at K227 billion but as of June, 2014, the debt stock is K320 billion and that’s a fact and we cannot change figures,” he said