Newly appointed Minister of Finance, Felix Mlusu, will present the provisional budget in Parliament this Tuesday, newly appointed Leader of the House, Richard Chimwendo Banda confirmed.
Mlusu will present to the House a provisional budget to cater for government business in the interim as the new administration of President Lazarus Chakwera works on a full fiscal plan.
Chimwendo said said the provisional budget, as provided for in the Constitution, has a maximum timeframe of four months, giving room for government to prepare a full budget.
He said before October this year, the nation should have the full fiscal plan in place to ensure all aspects of development are implemented as per government design.
Chimwendo Banda said since fiscal year ends on June 30, Government will seek the House's approval of expenditure in the absence of an annual budget beginning Wednesday July 1.
"We need Parliament to authorize spending beginning 1 July as government cannot spend without the approval of the House. As such, the Minister of Finance will present a provisional statement requesting the House to approve spending in the interim as they continue to work on the full annual budget," Chimwendo Banda said.
Mlusu, who was appointed on Monday and took oath of office and allegiance, hinted that the interim budget will run for three months.
He said the provisional budget provides basic information that includes statutory expenses such as salaries, pensions and gratuities.
"Of course the new administration would want to emphasize on its priority areas, that is why we are coming up with a provisional budget to give us time to review and prepare the annual budget. For now, we will come up with a budget to cover us for the next three months," Mlusu said.
Three weeks ago, former Minister of Finance, Economic Planning and Development Joseph Mwanamvekha in the DPP administration presented to the House the 2020/2021 annual budget which was pegged as K2.2 trillion. The budget was undergoing a cluster level review at the time the House last adjourned.
However, with the change in administration following the election Chakwera of the former opposition Malawi Congress Party (MCP), it is expected that the new Finance Minister will present a new budget at the end of the provisional budget.