According to figures from the Reserve Bank of Malawi (RBM)’s Monetary Policy Public Report for November 2019, a budget deficit of K90.61 billion during the first quarter of the 2019/20 financial year.

The report shows that out if the sum above, K276.93 billion was domestic revenues while K15.52 billion was grants. In the 2019/20, total revenue and grants are projected at K1.6 trillion, representing 25.1% of GDP. This is an increase of 26.1% from the 2018/19 budget.

On the other hand, the Finance Minister, Joseph Mwanamvekha, acknowledged that the government is failing, where fiscal deficits and public debt, though he had earlier said that there is fiscal confidence despite the procurement, fraud and interest on debt being major risks to the 2018/19 National Budget implementation. Before Mwanamvekha presented the proposed 2019/20 budget, the  Budget and Finance Committee of Parliament advised Treasury to consider implementing a zero-deficit budget to cushion the country from rising public debt stock.

The call came after the International Monetary Fund (IMF) warned Malawi against overborrowing, while the current fiscal deficit is 32% higher than last year’s fiscal deficit of MK183.621 billion. In the 2018/19 financial year, the Malawi government will spend a projected K183 billion (3.4% of GDP) as interest payments for the debts.