ICAM CAUTIONS TREASURY ABOUT BORROWING – Malawi News Online

External borrowing could expose the country to currency risks, which may result in kwacha depreciation, as said by the Institute of Chartered Accountants in Malawi (Icam), reacting to the 2019/20 National Budget.

The budget has a deficit of K155.9 billion. Where will the resources come from to bridge this gap? The current political impasse means that revenue collection will no doubt have slowed down in the first quarter of 2019, which will be exacerbated by a slowdown in economic activity and investment due to uncertainty.”

In its 2019/20 National Budget Analysis, MCCCI chief executive officer Chancellor Kaferapanjira observed that while there have been a few positive tax policy measures, overall, there are more punitive measures than positive ones.

On the other hand, Economic experts and other development partners have described the 2019/20 National Budget as a ‘cautious’ financial plan. Prior to the official presentation, Mwanamvekha hinted that the 2019/20 National Budget will be a balanced fiscal plan that will sustain economic stability while bolstering growth rate.