Figures from the August 2019 Monthly Economic Report shows that Treasury consecutively registered a dip in government revenues, from July and August. The report shows that total revenues in August declined by K10.8 billion to K86.4 billion, following another decline of K35.5 billion recorded in July.

The report says that in August, the lowered revenues were caused by a drop in domestic revenue collections, which fell by K13.2 billion to K81.4 billion in the month in review, while tax revenue collections and non-tax revenue collections dropped by K11.1 billion and K2.1 billion, respectively.

The report comes amidst another report that shows that parastatals have had their working capital negatively impacted, after a worsened liquidity position. Figures show that by December 2018, Blantyre Water Board (BWB)’s liquidity position continued to be weak and below desirable levels at a ratio of 0.37:1, meaning that the board was still unable to cover its current liabilities as they fall due. During the same period, the liquidity positions of Central Region Water Board (0.73:1), Northern Region Water Board (NRWB) (1:1), Malawi Housing Corporation (0.62:1), National Oil Company of Malawi (1:1), Malawi Post Corporation (0.58: 1), Lilongwe Handling Company (1.87:1), Malawi Institute of Management and Airport Development Limited at 1.13: 1, were barely liquid.

On the other hand, the Mid-Year Budget Review presented by (former) Minister of Finance Goodall Gondwe, showed that corporate tax underperformed during the first half of this fiscal year. However, the Malawi Revenue Authority has touted its online services as effective, saying most of its taxes (more than 80%) are paid online.