By Benadetta Chiwanda Mia:
Economic experts and other commentators say they expect the next budget to focus on sustainable growth.
Finance Minister Simplex Chithyola Banda is expected to present to Parliament the national budget on Friday.
In an interview, local economic commentator Marvin Banda said the next budget must move beyond mere talk of development and concentrate on immediate issues that are affecting the country, including rising food inflation.
“The shift of the fiscal year to April aims to strategically empower Admarc in dominating the agri-market, thereby controlling inflationary forces.
“Efficient farming by expert producers, rather than universal maize agriculture, is key to flooding the market and dampening inflationary pressures,” Banda said.
He also highlighted the importance of budgeting fertiliser procurement to coincide with lower international demand, thus preparing for future agricultural cycles more effectively.
In a separate interview, economist Edward Chilima said given the current economic situation, government’s allocations should be focused on addressing forex shortages.
“There should be some direct interventions in areas that can support our country to be exporting more products because, short of that, we will continue to have these problems. Our expectation is that this is not going to be a political budget, where now expenditures are all over the place, this being an election year,” Chilima said.
He observed that the economy was already going through some challenges, such that the focus had to be on production and not just consumption.
In February 2024, Chithyola Banda presented the K5.98 trillion 2024-2025 national budget with an estimated deficit of K1.43 trillion, representing 7.6 percent of gross domestic product.
The 2024-25 national budget has faced immense pressure characterised by a rise in deficits.
The operating environment is also rated as volatile, where commodity prices continue to rise, with the cost of basic needs getting beyond low income earners’ reach as more people fall into the abyss of poverty, according to several recent research studies.
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