Govt revises upward 2020/2021 national budget

The government has revised upwards the 2020/21 national budget from K2.2 trillion to K2.3 trillion owing to increased emergency expenditure due to the Covid-19 pandemic and re-administering of the Malawi School Certificate of Education (MSCE) among other things.

Presenting the mid-year budget statement in Parliament, Minister of Finance Felix Mlusu said the revised budget has a deficit of K810 billion up from the initial K755 billion representing 8.8 percent of gross domestic product.

Mlusu said last year the economy grew by 0.9 percent but it will experience a rebound this year to achieve the projected growth of 3.5 percent owing to the anticipated better agriculture outturn due to the Affordable Input Programme (AIP).

The Minister said inflation is projected to average eight percent in 2021 while the policy rate is projected at 12 percent.