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| National |
| Opposition hail budget |
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by
George Ntonya, 17 June 2006
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05:10:28
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The opposition side in Parliament has welcomed the 2006/2007 budget statement Finance Minister Goodall Gondwe presented in the House Friday, but said there is more to be done for ordinary Malawians to see its benefits.
“There are positives, but it’s a traditional budget. There isn’t anything particularly new that has excited me,” UDF spokesperson on finance Friday Jumbe said immediately after Gondwe had made the budget statement.
He said he was hopeful the agriculture, health and education sectors that have been prioritised would perform better.
“I do hope that there is adequate financial provisions to make sure that the sectors that have been prioritised would perform and deliver to the rural people,” Jumbe, who is a former minister of finance, said adding that there is also need for Malawi to invest significantly in sectors of tourism, mining and the general industry so that the country can attract more investors in such sectors.
“It is not very different from the previous budgets, but I give credit to the government for making it more development-oriented,” said People’s Progressive Movement (PPM) vice president Mark Katsonga Phiri.
He said his only worry was that the minister was not clear on how the government would ensure that tax reductions that have been proposed do not have a negative impact on government’s revenue base.
MCP spokesperson on finance Respicious Dzanjalimodzi also described the proposed budget as a “positive development”. But he said he wished the government could reduce value added tax (VAT) significantly for the benefit of consumers.
“The only complaint I have is on VAT. Last year I made a proposal that they should reduce the [VAT] rate,” he said adding, however, that he needed to go through the budget documents to make more constructive comments.
“The budget has positive elements. But still there are areas that need to be thoroughly discussed and a way forward found,” remarked Justin Malewezi who is an independent member of Parliament for Ntchisi North East.
Malewezi, who is former state vice-president, commended the government for proposing tax reductions for the private sector, which he said would help beckon more investors.
“I think there is still some work to be done in the agriculture sector, especially on how the fertilizer subsidy programme should be implemented effectively,” he said, adding that he looked forward to seeing local fertilizer companies being involved in the programme so that they are not thrown out of business.
According to Jumbe, it is only when the budget helps to create economic stability and growth that it can be described as beneficial to the poor masses.
“A rural person starts benefiting when prices of goods are low and when food is readily available.”
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