MALGA responds to budget, says its not ‘inspiring’ fiscal devolution to councils
Malawi Local Government Association (MALGA)—an umbrella body of all local government authorities—has said the proposed 2024/2025 national budget is not “inspiring” fiscal devolution to local councils.
MALGA Executive Director, Hadrod Zeru Mkandawire, has cited “nominal increments” in certain funding windows and absence of a bailout package for the “debt distressed” local authorities.
Among others, the government has allocated K38.6 billion under the Constituency Development Fund (K200 million per constituency), K14 billion for the rehabilitation of district hospitals, K36.88 billion under the Governance to Enable Service Delivery (GESD) Project and K20.1 billion for the construction of city roads.
However, Mkandawire said the budget statement is yet another missed opportunity for the government to entrench fiscal devolution.
“Besides the World Bank GESD funded projects, there is no meaningful development funding for local development from the tax payers.
“It is also regrettable that the government continues to overlook our plea for the bailout package for the local government authorities.
“The government cannot expect to reposition the councils as key actors in contributing towards Malawi 2063 in the current debt distress they are in,” he said.
Finance and Economic Affairs Minister, Simplex Chithyola Banda, presented the budget in Parliament on Friday, stating that the government will continue implementing development projects in the local authorities.
More allocations to the councils include K6.19 billion for District Development Fund (DDF), K2.3 billion for the construction of water structures under the Water Resources Fund (K12 million per constituency), 922 million for Infrastructure Development Fund (IDF).
Mkandawire also noted that the increment on DDF, roads budget, IDF and health rehabilitation funds is nominal, considering the recent devaluations.
“For instance, do you expect seven urban councils to share K900 million and have meaningful infrastructure development? Mind you, urban councils do not benefit from the World Bank’s GESD funds.
“You can use CDF as a benchmark for local development because it is in the public domain that CDF is a political fund camouflaged as local development fund,” he said.
The MALGA Executive Director further noted that, once again, the government has overlooked the councils plea to extend the duty waiver scheme on vehicles for councilors in order to ease their mobility challenges.
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