Chithyola opens pre-budget consultation meeting, says this year’s budget is “people’s friendly”
Minister of Finance and Economic Affairs, Simplex Chithyola Banda, has inaugurated the first session of the 2025/2026 pre-budget consultation meetings at the Bingu International Convention Centre (BICC) in Lilongwe. He described the upcoming fiscal plan as a “people-friendly budget” focused on sustainable economic growth and reduced borrowing.
The minister highlighted the government’s commitment to utilizing revenue from taxes and other local sources while cutting back on external borrowing. “This year’s budget will prioritize key areas for sustainable economic growth, relying on locally generated revenue,” Chithyola Banda emphasized.
He further noted that Malawi continues discussions with the International Monetary Fund (IMF) to unlock the Extended Credit Facility (ECF). The government is pushing for the release of the second tranche of $175 million to support the budget’s implementation. Over a year has passed since the approval of the four-year ECF, but the first review of its implementation is yet to be completed, delaying the remaining disbursements.
Chithyola Banda urged stakeholders attending the meeting to contribute meaningful input toward crafting a truly people-centered budget. He reassured participants that the ministry values public consultations and will incorporate some of the suggestions into the final budget. However, he acknowledged that not all proposals could be adopted.
“Consultations are crucial for soliciting public perspectives, which help us achieve a balanced and people-focused national budget,” he said.
The minister admitted that the economy faces significant challenges driven by both internal and external factors. He emphasized the importance of recovery efforts and expressed hope that the consultations would provide practical views and proposals to support these efforts.
A presentation by the Lilongwe University of Agriculture and Natural Resources (LUANAR) at the meeting revealed that about 85% of farmers have been adversely affected by dry spells and fall armyworms. Many farmers have resorted to replanting using recycled seed, reducing the use of certified seed from 72% to 30%, which threatens agricultural productivity.
Despite Malawi’s adherence to the 10% agriculture investment threshold under the Comprehensive Africa Agriculture Development Program (CAADP), the presentation highlighted mismanagement of resources in the sector, contributing to declining production.
The Finance Ministry plans to hold additional consultation meetings across the country’s three regions, ensuring inclusivity in shaping the 2025/26 budget. Chithyola Banda assured stakeholders that all views and suggestions from these meetings would be compiled and considered during the budget formulation process.
