Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha says Malawi's statutory expenditures consume about 90% percent of total domestic revenue.
This, according to Mwanamvekha, puts Malawi at narrow space amid swollen public debt, now hovering around k24 trillion.
He was speaking this morning during the opening of a Consultative workshop on the National Economic Recovery Plan for the 2025-2030 at Bingu International Convention Center in Lilongwe.
He also revealed that, on average, Malawi generates about k6 trillion from domestic revenue to fund its operations and developmental activities, including settling debts, a situation, he says, puts Malawi at a disadvantaged point considering the needs and demand for development across all sectors.
He, therefore, put into context that, if the government suspends all statutory expenditures, the K6 trillion annual domestic revenues, would take four years to settle public debt.
He then said the current economic situation calls for bold decisions to generate more funds and strengthen prudence in financial management practices to safeguard limited resources.
Mwanamvekha also justified tax hikes, saying that without the adjustments, it would be difficult to meet statutory obligations.
Also speaking at the event, Secretary to the Treasury, Dr Cliff Chiunda urged stakeholders to provide inputs to ensure that the final economic recovery plan becomes a living document that answers economic questions across all sectors of the economy.
Senior government officials, including Reserve Bank Governor Dr George Partridge, government Chief Secretary Justin Saidi, principal secretaries, members of diplomatic missions, academia, and CSOs are in attendance.
