Trending 
The Malawian government made a decision to cut the 2018/19 financial year budget as the country has failed to collect enough revenue with some donors yet to fulfil funding commitments, according to Malawian Finance Minister, Goodall Gondwe.
Presenting the mid-year budget estimates in Lilongwe, Gondwe said the government considered a disbursement of $82.3 million from the World Bank when it formulated the budget for the 2018/19 financial year, which will end on June 30.
This disbursement is expected during the 2019-2020 fiscal year, which will begin on July 1 and has forced his government to increase domestic borrowing and cut some expenditure to fill the gaps, he adds.
Read More : Atiku Appoints El-Rufai to Campaign Council
Malawi’s parliament meets annually to deliberate and approve the next year’s budget. Gondwe said that the approved budget of $1.997 billion for the 2018/19 fiscal year has been revised downwards to $1.962 billion, while the approved estimate of revenue and grants at $1.715 billion has also been revised downwards to $1.611 billion.
“With these revisions, the approved net domestic borrowing has been revised upwards from $225.4 million to $294.7 million,” the minister says in a statement.
Gondwe notes that his government hopes it will manage to control expenditures by improving management and expresses optimism that Malawi’s economy is on its way up, citing a stable reduction in bank lending rates.
